Critical Survey: Community Healthcare Trust (CHCT) & Care Capital Properties (CCP)
Community Healthcare Trust (NYSE: CHCT) and Care Capital Properties (NYSE:CCP) are both financials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, institutional ownership, earnings, dividends, profitability and risk.
Earnings and Valuation
This table compares Community Healthcare Trust and Care Capital Properties’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Community Healthcare Trust||$25.20 million||20.27||$2.72 million||$0.22||128.32|
|Care Capital Properties||N/A||N/A||N/A||$2.90||8.35|
This is a breakdown of current recommendations and price targets for Community Healthcare Trust and Care Capital Properties, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Community Healthcare Trust||0||0||1||0||3.00|
|Care Capital Properties||0||3||0||0||2.00|
Community Healthcare Trust presently has a consensus target price of $26.50, suggesting a potential downside of 6.13%. Care Capital Properties has a consensus target price of $22.50, suggesting a potential downside of 7.06%. Given Community Healthcare Trust’s stronger consensus rating and higher possible upside, equities analysts plainly believe Community Healthcare Trust is more favorable than Care Capital Properties.
This table compares Community Healthcare Trust and Care Capital Properties’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Community Healthcare Trust||8.86%||1.40%||1.00%|
|Care Capital Properties||109.47%||40.07%||16.26%|
Community Healthcare Trust pays an annual dividend of $1.58 per share and has a dividend yield of 5.6%. Care Capital Properties pays an annual dividend of $2.28 per share and has a dividend yield of 9.4%. Community Healthcare Trust pays out 718.2% 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 78.6% 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 is clearly the better dividend stock, given its higher yield and lower payout ratio.
Insider & Institutional Ownership
72.5% of Community Healthcare Trust shares are owned by institutional investors. Comparatively, 88.9% of Care Capital Properties shares are owned by institutional investors. 5.5% of Community Healthcare 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 large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Care Capital Properties beats Community Healthcare Trust on 7 of the 12 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 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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