CareTrust REIT (NASDAQ: CTRE) is one of 26 publicly-traded companies in the “Healthcare REITs” industry, but how does it contrast to its competitors? We will compare CareTrust REIT to similar businesses based on the strength of its profitability, analyst recommendations, valuation, earnings, risk, institutional ownership and dividends.

Volatility and Risk

CareTrust REIT has a beta of 0.87, indicating that its share price is 13% less volatile than the S&P 500. Comparatively, CareTrust REIT’s competitors have a beta of 0.50, indicating that their average share price is 50% less volatile than the S&P 500.

Profitability

This table compares CareTrust REIT and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CareTrust REIT 24.02% 5.76% 3.03%
CareTrust REIT Competitors 38.08% 7.62% 3.76%

Institutional and Insider Ownership

89.4% of CareTrust REIT shares are held by institutional investors. Comparatively, 84.4% of shares of all “Healthcare REITs” companies are held by institutional investors. 1.6% of CareTrust REIT shares are held by company insiders. Comparatively, 2.1% of shares of all “Healthcare REITs” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares CareTrust REIT and its competitors revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
CareTrust REIT $118.79 million $96.91 million 43.53
CareTrust REIT Competitors $788.38 million $482.52 million 40.56

CareTrust REIT’s competitors have higher revenue and earnings than CareTrust REIT. CareTrust REIT is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Analyst Recommendations

This is a summary of recent ratings and target prices for CareTrust REIT and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CareTrust REIT 0 4 3 0 2.43
CareTrust REIT Competitors 202 827 675 12 2.29

CareTrust REIT currently has a consensus price target of $18.33, indicating a potential downside of 6.41%. As a group, “Healthcare REITs” companies have a potential upside of 0.39%. Given CareTrust REIT’s competitors higher probable upside, analysts clearly believe CareTrust REIT has less favorable growth aspects than its competitors.

Summary

CareTrust REIT competitors beat CareTrust REIT on 9 of the 13 factors compared.

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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