Community Healthcare Trust (NYSE: CHCT) and Universal Health Realty Income Trust (NYSE:UHT) are both small-cap finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, valuation, analyst recommendations, dividends, earnings, risk and profitability.

Volatility and Risk

Community Healthcare Trust has a beta of 1.03, indicating that its share price is 3% more volatile than the S&P 500. Comparatively, Universal Health Realty Income Trust has a beta of 0.34, indicating that its share price is 66% less volatile than the S&P 500.

Insider & Institutional Ownership

60.2% of Community Healthcare Trust shares are owned by institutional investors. Comparatively, 59.2% of Universal Health Realty Income Trust shares are owned by institutional investors. 5.5% of Community Healthcare Trust shares are owned by company insiders. Comparatively, 1.9% of Universal Health Realty Income Trust shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Community Healthcare Trust and Universal Health Realty Income Trust’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Community Healthcare Trust 11.30% 1.81% 1.33%
Universal Health Realty Income Trust 62.40% 8.23% 3.27%

Dividends

Community Healthcare Trust pays an annual dividend of $1.57 per share and has a dividend yield of 5.9%. Universal Health Realty Income Trust pays an annual dividend of $2.64 per share and has a dividend yield of 3.5%. 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. Universal Health Realty Income Trust pays out 81.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Universal Health Realty Income Trust has increased its dividend for 31 consecutive years.

Earnings and Valuation

This table compares Community Healthcare Trust and Universal Health Realty Income Trust’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Community Healthcare Trust $30.77 million 10.88 $20.43 million $0.27 97.78
Universal Health Realty Income Trust $74.03 million 13.70 $51.20 million $3.23 23.08

Universal Health Realty Income Trust has higher revenue and earnings than Community Healthcare Trust. Universal Health Realty Income Trust is trading at a lower price-to-earnings ratio than Community Healthcare Trust, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Community Healthcare Trust and Universal Health Realty Income Trust, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Community Healthcare Trust 0 0 1 0 3.00
Universal Health Realty Income Trust 0 0 0 0 N/A

Community Healthcare Trust currently has a consensus target price of $26.50, suggesting a potential upside of 0.38%. Given Community Healthcare Trust’s higher probable upside, equities research analysts plainly believe Community Healthcare Trust is more favorable than Universal Health Realty Income Trust.

Summary

Universal Health Realty Income Trust beats Community Healthcare Trust on 10 of the 16 factors compared between the two stocks.

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.

About Universal Health Realty Income Trust

Universal Health Realty Income Trust is a real estate investment trust (REIT). The Company invests in healthcare and human service related facilities, including acute care hospitals, rehabilitation hospitals, sub-acute facilities, surgery centers, free-standing emergency departments, childcare centers and medical office buildings (MOBs). As of February 28, 2017, the Company had 67 real estate investments located in 20 states in the United States consisting of six hospital facilities, including three acute care, one rehabilitation and two sub-acute; 54 MOBs; three free-standing emergency departments (FEDs), and four preschool and childcare centers. The Company’s facilities include Southwest Healthcare System, Inland Valley Campus, Wellington Regional Medical Center, Kindred Hospital Chicago Central, Vibra Hospital of Corpus Christi, Chesterbrook Academy, and Desert Valley Medical Center.

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