Analyzing CareTrust REIT (NYSE:CTRE) & InvenTrust Properties (NYSE:IVT)

CareTrust REIT (NYSE:CTRE) and InvenTrust Properties (NYSE:IVT) are both mid-cap finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their valuation, institutional ownership, analyst recommendations, profitability, dividends, risk and earnings.

Valuation & Earnings

This table compares CareTrust REIT and InvenTrust Properties”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CareTrust REIT	$277.03 million	27.77	$125.08 million	$1.20	29.39
InvenTrust Properties	$273.97 million	7.77	$13.66 million	$1.53	17.93

CareTrust REIT has higher revenue and earnings than InvenTrust Properties. InvenTrust Properties is trading at a lower price-to-earnings ratio than CareTrust REIT, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares CareTrust REIT and InvenTrust Properties’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CareTrust REIT	58.90%	7.60%	5.90%
InvenTrust Properties	40.46%	6.65%	4.44%

Insider and Institutional Ownership

87.8% of CareTrust REIT shares are held by institutional investors. Comparatively, 61.7% of InvenTrust Properties shares are held by institutional investors. 0.5% of CareTrust REIT shares are held by company insiders. Comparatively, 0.6% of InvenTrust Properties shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Dividends

CareTrust REIT pays an annual dividend of $1.34 per share and has a dividend yield of 3.8%. InvenTrust Properties pays an annual dividend of $0.95 per share and has a dividend yield of 3.5%. CareTrust REIT pays out 111.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. InvenTrust Properties pays out 62.1% of its earnings in the form of a dividend. InvenTrust Properties has raised its dividend for 4 consecutive years.

Volatility & Risk

CareTrust REIT has a beta of 0.82, suggesting that its stock price is 18% less volatile than the S&P 500. Comparatively, InvenTrust Properties has a beta of 0.86, suggesting that its stock price is 14% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and price targets for CareTrust REIT and InvenTrust Properties, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CareTrust REIT	0	1	1	0	2.50
InvenTrust Properties	0	3	4	0	2.57

InvenTrust Properties has a consensus target price of $31.80, suggesting a potential upside of 15.89%. Given InvenTrust Properties’ stronger consensus rating and higher probable upside, analysts clearly believe InvenTrust Properties is more favorable than CareTrust REIT.

Summary

CareTrust REIT beats InvenTrust Properties on 9 of the 17 factors compared between the two stocks.

About CareTrust REIT

CareTrust REIT, Inc. is a self-administered, publicly-traded real estate investment trust engaged in the ownership, acquisition, development and leasing of skilled nursing, seniors housing and other healthcare-related properties. With a nationwide portfolio of long-term net-leased properties, and a growing portfolio of quality operators leasing them, CareTrust REIT is pursuing both external and organic growth opportunities across the United States.

About InvenTrust Properties

InvenTrust Properties Corp. (the “Company,” “IVT,” or “InvenTrust”) is a premier Sun Belt, multi-tenant essential retail REIT that owns, leases, redevelops, acquires and manages grocery-anchored neighborhood and community centers as well as high-quality power centers that often have a grocery component. Management pursues the Company’s business strategy by acquiring retail properties in Sun Belt markets, opportunistically disposing of retail properties, maintaining a flexible capital structure, and enhancing environmental, social and governance (“ESG”) practices and standards. A trusted, local operator bringing real estate expertise to its tenant relationships, IVT has built a strong reputation with market participants across its portfolio. IVT is committed to leadership in ESG practices and has been a Global Real Estate Sustainability Benchmark (“GRESB”) member since 2013.