Care Capital Properties (NYSE: CCP) and Ventas (NYSE:VTR) are both finance companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, profitability, analyst recommendations, dividends, valuation, earnings and risk.

Earnings and Valuation

This table compares Care Capital Properties and Ventas’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Care Capital Properties N/A N/A N/A $1.88 12.88
Ventas $3.52 billion 6.92 $1.88 billion $1.97 34.74

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

Profitability

This table compares Care Capital Properties and Ventas’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Care Capital Properties 65.25% 20.38% 8.35%
Ventas 20.08% 6.31% 2.81%

Dividends

Care Capital Properties pays an annual dividend of $2.28 per share and has a dividend yield of 9.4%. Ventas pays an annual dividend of $3.10 per share and has a dividend yield of 4.5%. Care Capital Properties pays out 121.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Ventas 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 has increased its dividend for 6 consecutive years. Care Capital Properties is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Ratings

This is a summary of current ratings and target prices for Care Capital Properties and Ventas, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Care Capital Properties 0 3 1 0 2.25
Ventas 3 5 0 0 1.63

Care Capital Properties currently has a consensus target price of $26.00, suggesting a potential upside of 7.39%. Ventas has a consensus target price of $62.67, suggesting a potential downside of 8.44%. Given Care Capital Properties’ stronger consensus rating and higher probable upside, analysts clearly believe Care Capital Properties is more favorable than Ventas.

Volatility & Risk

Care Capital Properties has a beta of 0.38, indicating that its share price is 62% less volatile than the S&P 500. Comparatively, Ventas has a beta of 0.07, indicating that its share price is 93% less volatile than the S&P 500.

Institutional & Insider Ownership

88.9% of Care Capital Properties shares are owned by institutional investors. Comparatively, 89.4% of Ventas shares are owned by institutional investors. 1.7% of Care Capital Properties shares are owned by company insiders. Comparatively, 1.3% of Ventas shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

Care Capital Properties beats Ventas on 11 of the 14 factors compared between the two stocks.

About Care Capital Properties

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.

About Ventas

Ventas, Inc. is a real estate investment trust (REIT) with its properties located throughout the United States, Canada and the United Kingdom. The Company operates through three segments: triple-net leased properties, senior living operations and office operations. Under its triple-net leased properties segment, the Company invests in and owns seniors housing and healthcare properties throughout the United States and the United Kingdom and leases those properties to healthcare operating companies under triple-net or absolute-net leases that obligate the tenants to pay all property-related expenses. In its senior living operations segment, it invests in seniors housing communities throughout the United States and Canada and engages independent operators to manage those communities. In its office operations segment, the Company primarily acquires, owns, develops, leases and manages medical office buildings (MOBs) and life science and innovation centers throughout the United States.

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