Financial Contrast: CareTrust REIT (NYSE:CTRE) & National Healthcare Properties (NASDAQ:NHP)

CareTrust REIT (NYSE:CTRE) and National Healthcare Properties (NASDAQ:NHP) are both real estate companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, analyst recommendations, risk, profitability, earnings, institutional ownership and dividends.

Institutional and Insider Ownership

87.8% of CareTrust REIT shares are owned by institutional investors. 0.7% of CareTrust REIT shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
CareTrust REIT	62.19%	8.52%	6.64%
National Healthcare Properties	-13.04%	-6.22%	-2.52%

Analyst Recommendations

This is a summary of current ratings and price targets for CareTrust REIT and National Healthcare Properties, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CareTrust REIT	0	3	10	1	2.86
National Healthcare Properties	1	5	6	0	2.42

CareTrust REIT currently has a consensus price target of $44.25, indicating a potential upside of 21.05%. National Healthcare Properties has a consensus price target of $18.22, indicating a potential upside of 16.36%. Given CareTrust REIT’s stronger consensus rating and higher probable upside, research analysts clearly believe CareTrust REIT is more favorable than National Healthcare Properties.

Valuation & Earnings

This table compares CareTrust REIT and National Healthcare Properties”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CareTrust REIT	$476.39 million	18.13	$320.54 million	$1.59	22.99
National Healthcare Properties	$342.28 million	3.34	-$57.62 million	($0.13)	-120.46

CareTrust REIT has higher revenue and earnings than National Healthcare Properties. National Healthcare 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.

Dividends

CareTrust REIT pays an annual dividend of $1.56 per share and has a dividend yield of 4.3%. National Healthcare Properties pays an annual dividend of $0.30 per share and has a dividend yield of 1.9%. CareTrust REIT pays out 98.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. National Healthcare Properties pays out -230.8% of its earnings in the form of a dividend. CareTrust REIT has raised its dividend for 3 consecutive years. CareTrust REIT is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

CareTrust REIT beats National Healthcare Properties on 16 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 National Healthcare Properties

National Healthcare Properties Inc. is a self-managed real estate investment trust focused on acquiring, owning and investing in a diversified portfolio of healthcare real estate, with an emphasis on providing senior housing. National Healthcare Properties Inc. is based in NEW YORK.