Contrasting Healthcare Realty Trust (HR) & Care Capital Properties (CCP)
Healthcare Realty Trust (NYSE: HR) and Care Capital Properties (NYSE:CCP) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, institutional ownership, dividends, risk, earnings, analyst recommendations and profitability.
This table compares Healthcare Realty Trust and Care Capital Properties’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Healthcare Realty Trust||28.98%||7.38%||4.04%|
|Care Capital Properties||109.47%||40.07%||16.26%|
Insider & Institutional Ownership
92.2% of Healthcare Realty Trust shares are owned by institutional investors. Comparatively, 88.9% of Care Capital Properties shares are owned by institutional investors. 1.9% of Healthcare Realty Trust shares are owned by insiders. Comparatively, 1.7% of Care Capital Properties shares are owned by 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 Healthcare Realty Trust and Care Capital Properties’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Healthcare Realty Trust||$418.53 million||9.25||$236.35 million||$1.05||31.64|
|Care Capital Properties||N/A||N/A||N/A||$1.88||12.88|
Healthcare Realty Trust has higher revenue and earnings than Care Capital Properties. Care Capital Properties is trading at a lower price-to-earnings ratio than Healthcare Realty Trust, indicating that it is currently the more affordable of the two stocks.
This is a summary of recent ratings for Healthcare Realty Trust and Care Capital Properties, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Healthcare Realty Trust||1||3||4||0||2.38|
|Care Capital Properties||0||3||0||0||2.00|
Healthcare Realty Trust currently has a consensus target price of $32.60, indicating a potential downside of 1.87%. Care Capital Properties has a consensus target price of $22.50, indicating a potential downside of 7.06%. Given Healthcare Realty Trust’s stronger consensus rating and higher probable upside, analysts clearly believe Healthcare Realty Trust is more favorable than Care Capital Properties.
Healthcare Realty Trust pays an annual dividend of $1.20 per share and has a dividend yield of 3.6%. Care Capital Properties pays an annual dividend of $2.28 per share and has a dividend yield of 9.4%. Healthcare Realty Trust pays out 114.3% 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 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.
Risk and Volatility
Healthcare Realty Trust has a beta of 0.3, meaning that its stock price is 70% less volatile than the S&P 500. Comparatively, Care Capital Properties has a beta of 0.38, meaning that its stock price is 62% less volatile than the S&P 500.
Healthcare Realty Trust beats Care Capital Properties on 7 of the 13 factors compared between the two stocks.
About Healthcare Realty Trust
Healthcare Realty Trust Incorporated is a self-managed and self-administered real estate investment trust. The Company owns, leases, manages, acquires, finances, develops and redevelops real estate properties associated primarily with the delivery of outpatient healthcare services across the United States. The Company provided property management services for 146 healthcare-related properties across the nation, totaling approximately 10.3 million square feet, as of December 31, 2016. As of December 31, 2016, the Company’s 202 owned real estate properties were located in 27 states and totaled approximately 14.6 million square feet. The Company’s medical office/outpatient facilities are located in various states of the United States, such as Alabama, Arizona, California, Colorado, District of Columbia, Florida, Hawaii, Illinois, Indiana, Iowa, Minnesota, Missouri, North Carolina, Oklahoma, Tennessee, Texas, Virginia and Washington.
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.
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