Care Capital Properties (CCP) vs. CareTrust REIT (CTRE) Critical Analysis
Care Capital Properties (NYSE: CCP) and CareTrust REIT (NASDAQ:CTRE) are both financials companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, risk, valuation, profitability, dividends and earnings.
This is a summary of recent recommendations and price targets for Care Capital Properties and CareTrust REIT, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Care Capital Properties||0||3||0||0||2.00|
Care Capital Properties presently has a consensus price target of $22.50, indicating a potential downside of 7.06%. CareTrust REIT has a consensus price target of $19.14, indicating a potential upside of 2.04%. Given CareTrust REIT’s stronger consensus rating and higher possible upside, analysts clearly believe CareTrust REIT is more favorable than Care Capital Properties.
This table compares Care Capital Properties and CareTrust REIT’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Care Capital Properties||109.47%||40.07%||16.26%|
Valuation & Earnings
This table compares Care Capital Properties and CareTrust REIT’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Care Capital Properties||N/A||N/A||N/A||$2.90||8.35|
|CareTrust REIT||$104.68 million||13.61||$29.35 million||$0.47||39.91|
CareTrust REIT has higher revenue and earnings than Care Capital Properties. Care Capital 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.
Institutional & Insider Ownership
88.9% of Care Capital Properties shares are held by institutional investors. Comparatively, 91.4% of CareTrust REIT shares are held by institutional investors. 1.7% of Care Capital Properties shares are held by insiders. Comparatively, 1.6% of CareTrust REIT shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Care Capital Properties pays an annual dividend of $2.28 per share and has a dividend yield of 9.4%. CareTrust REIT pays an annual dividend of $0.74 per share and has a dividend yield of 3.9%. Care Capital Properties pays out 78.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. CareTrust REIT pays out 157.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Care Capital Properties is clearly the better dividend stock, given its higher yield and lower payout ratio.
Care Capital Properties beats CareTrust REIT on 7 of the 12 factors compared between the two stocks.
Care Capital Properties Company Profile
Care Capital Properties, Inc. is a self-administered, self-managed real estate investment trust with a diversified portfolio of skilled nursing facilities (SNFs) and other healthcare assets operated by private regional and local care providers. The Company leases its properties to unaffiliated tenants under long-term triple-net leases, pursuant to which the tenants are obligated to pay all property-related expenses, including maintenance, utilities, repairs and taxes. It also manages a small portfolio of secured and unsecured loans, made primarily to its SNF operators and other post-acute care providers. As of December 31, 2016, its portfolio consisted of 345 properties operated by 38 private regional and local care providers, spread across 36 states and containing a total of approximately 38,000 beds/units. It conducts all of its operations through its operating partnership, Care Capital Properties, LP, and its subsidiaries.
CareTrust REIT Company Profile
CareTrust REIT, Inc. is a self-administered, self-managed real estate investment trust. The Company is engaged in the ownership, acquisition and leasing of healthcare-related properties. It makes investments in healthcare-related real estate assets. As of December 31, 2016, its real estate portfolio included 154 skilled nursing facilities (SNFs), SNF Campuses, assisted living facilities and independent living facilities. As of December 31, 2016, the 93 facilities leased to The Ensign Group, Inc. had a total of 9,916 beds and units and are located in Arizona, California, Colorado, Idaho, Iowa, Nebraska, Nevada, Texas, Utah and Washington; the 16 facilities leased to affiliates of Pristine Senior Living, LLC had a total of 1,488 beds and units; and the 42 remaining leased properties had a total of 3,515 beds and units and are located in California, Colorado, Florida, Georgia, Idaho, Indiana, Iowa, Maryland, Michigan, Minnesota, North Carolina, Texas, Virginia, Washington and Wisconsin.
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