Critical Analysis: Care Capital Properties (CCP) and Aviv REIT (NASDAQ:AVIV)
Care Capital Properties (NYSE: CCP) and Aviv REIT (NASDAQ:AVIV) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, dividends, profitabiliy, valuation, earnings, risk and institutional ownership.
Insider and Institutional Ownership
87.2% of Care Capital Properties shares are held by institutional investors. 1.7% of Care Capital Properties shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Earnings and Valuation
This table compares Care Capital Properties and Aviv REIT’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Care Capital Properties||$335.69 million||6.37||$308.17 million||$1.88||13.54|
Care Capital Properties has higher revenue and earnings than Aviv REIT.
This is a breakdown of current ratings and target prices for Care Capital Properties and Aviv REIT, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Care Capital Properties||0||3||1||0||2.25|
Care Capital Properties currently has a consensus target price of $26.00, indicating a potential upside of 2.12%. Given Care Capital Properties’ higher possible upside, research analysts clearly believe Care Capital Properties is more favorable than Aviv REIT.
This table compares Care Capital Properties and Aviv REIT’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Care Capital Properties||45.61%||13.48%||5.60%|
Care Capital Properties pays an annual dividend of $2.28 per share and has a dividend yield of 9.0%. Aviv REIT does not pay a dividend. 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.
Care Capital Properties beats Aviv REIT on 9 of the 10 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 Aviv REIT
Aviv REIT, Inc. (AVIV) is a real estate investment trust (REIT). The Company is engaged in investments in healthcare properties, consisting primarily of skilled nursing facilities (SNFs), assisted living facilities (ALFs), and other healthcare properties located in the United States. It specializes in the ownership and triple-net leasing of post-acute and long-term care SNFs. Its leases include rent escalation provisions. The Company is the general partner of Aviv Healthcare Properties Limited Partnership. Its portfolio consists of approximately 346 properties, comprising 285 skilled nursing facilities, 35 assisted living facilities, 14 traumatic brain injury facilities, two long-term acute care hospitals, one neuro hospital, two independent living facilities, two medical office buildings, and five land parcels for development, with approximately 29,646 beds in 30 states triple-net leased to 37 operators.
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