Healthcare Trust of America (HTA) versus Community Healthcare Trust (CHCT) Head-To-Head Analysis
Healthcare Trust of America (NYSE: HTA) and Community Healthcare Trust (NYSE:CHCT) are both finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, dividends, valuation, profitability, institutional ownership, earnings and analyst recommendations.
Institutional and Insider Ownership
97.8% of Healthcare Trust of America shares are owned by institutional investors. Comparatively, 60.2% of Community Healthcare Trust shares are owned by institutional investors. 1.5% of Healthcare Trust of America shares are owned by company insiders. Comparatively, 5.5% of Community Healthcare Trust shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Healthcare Trust of America pays an annual dividend of $1.20 per share and has a dividend yield of 4.0%. Community Healthcare Trust pays an annual dividend of $1.57 per share and has a dividend yield of 5.8%. Healthcare Trust of America pays out 571.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Community Healthcare Trust pays out 581.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Healthcare Trust of America has raised its dividend for 4 consecutive years.
This table compares Healthcare Trust of America and Community Healthcare Trust’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Healthcare Trust of America||6.07%||1.42%||0.70%|
|Community Healthcare Trust||11.30%||1.81%||1.33%|
Earnings and Valuation
This table compares Healthcare Trust of America and Community Healthcare Trust’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Healthcare Trust of America||$504.67 million||11.85||$301.67 million||$0.21||141.90|
|Community Healthcare Trust||$30.77 million||11.12||$20.43 million||$0.27||99.86|
Healthcare Trust of America has higher revenue and earnings than Community Healthcare Trust. Community Healthcare Trust is trading at a lower price-to-earnings ratio than Healthcare Trust of America, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Healthcare Trust of America has a beta of 0.32, indicating that its stock price is 68% less volatile than the S&P 500. Comparatively, Community Healthcare Trust has a beta of 1.03, indicating that its stock price is 3% more volatile than the S&P 500.
This is a breakdown of current ratings and target prices for Healthcare Trust of America and Community Healthcare Trust, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Healthcare Trust of America||0||1||7||1||3.00|
|Community Healthcare Trust||0||0||1||0||3.00|
Healthcare Trust of America currently has a consensus price target of $33.75, suggesting a potential upside of 13.26%. Community Healthcare Trust has a consensus price target of $26.50, suggesting a potential downside of 1.71%. Given Healthcare Trust of America’s higher possible upside, equities analysts clearly believe Healthcare Trust of America is more favorable than Community Healthcare Trust.
Healthcare Trust of America beats Community Healthcare Trust on 10 of the 17 factors compared between the two stocks.
About Healthcare Trust of America
Healthcare Trust of America, Inc. is a real estate investment trust. The Company is an owner and operator of medical office buildings (MOBs) in the United States. The Company focuses on owning and operating MOBs that serve healthcare delivery and are located on health system campuses, near university medical centers, or in community core outpatient locations. As of December 31, 2016, the Company’s portfolio consisted of approximately 17.7 million square feet of gross leasable area. As of December 31, 2016, the Company’s portfolio included MOBs, such as single-tenant and multi-tenant, and other healthcare facilities, such as hospitals and senior care. As of December 31, 2016, the Company’s portfolio had 355 buildings located in 31 states. As of December 31, 2016, the Company’s properties were located in various states of the United States, such as Alabama, Arizona, California, Colorado, Florida, Georgia, Hawaii, Illinois, Indiana, Kansas, Maryland, Michigan, Minnesota, Nevada and Utah.
About Community Healthcare Trust
Community Healthcare Trust Incorporated is an integrated healthcare real estate company. The Company owns and acquires, or finances, real estate properties that are leased to hospitals, doctors, healthcare systems or other healthcare service providers in non-urban markets. It has investments in healthcare real estate, including mortgage and other loans. The Company’s medical office buildings are located in areas, such as, Florida, Georgia, Illinois, Kentucky, Ohio and Texas. Its physician clinics are located in Alabama, Florida, Kansas, Pennsylvania and Wisconsin. Its surgical centers and hospitals are located in areas, such as Louisiana, Michigan and Arizona. Its behavioral facilities are located in Indiana and Illinois. Its specialty centers are located in Texas, Colorado and Alabama, among others. As of December 31, 2016, the Company had interests in 57 real estate properties and one mortgage note, located in 22 states, totaling over 1.33 million square feet in the aggregate.
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