Comparing CareTrust REIT (NYSE:CTRE) & Healthpeak Properties (NYSE:DOC)

CareTrust REIT (NYSE:CTRE) and Healthpeak Properties (NYSE:DOC) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, profitability, institutional ownership, earnings, valuation, dividends and analyst recommendations.

Analyst Recommendations

This is a summary of recent ratings and price targets for CareTrust REIT and Healthpeak Properties, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CareTrust REIT	0	1	2	2	3.20
Healthpeak Properties	1	6	6	0	2.38

CareTrust REIT currently has a consensus price target of $43.00, suggesting a potential upside of 16.88%. Healthpeak Properties has a consensus price target of $19.67, suggesting a potential upside of 8.74%. Given CareTrust REIT’s stronger consensus rating and higher probable upside, research analysts clearly believe CareTrust REIT is more favorable than Healthpeak Properties.

Risk & Volatility

CareTrust REIT has a beta of 0.75, indicating that its stock price is 25% less volatile than the S&P 500. Comparatively, Healthpeak Properties has a beta of 1.12, indicating that its stock price is 12% more volatile than the S&P 500.

Dividends

CareTrust REIT pays an annual dividend of $1.34 per share and has a dividend yield of 3.6%. Healthpeak Properties pays an annual dividend of $1.22 per share and has a dividend yield of 6.7%. CareTrust REIT pays out 100.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Healthpeak Properties pays out -2,440.0% of its earnings in the form of a dividend. Healthpeak Properties is clearly the better dividend stock, given its higher yield and lower payout ratio.

Institutional & Insider Ownership

87.8% of CareTrust REIT shares are held by institutional investors. Comparatively, 93.6% of Healthpeak Properties shares are held by institutional investors. 0.5% of CareTrust REIT shares are held by insiders. Comparatively, 0.2% of Healthpeak Properties shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares CareTrust REIT and Healthpeak Properties’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CareTrust REIT	61.00%	7.95%	6.13%
Healthpeak Properties	-1.36%	-0.44%	-0.19%

Earnings & Valuation

This table compares CareTrust REIT and Healthpeak Properties”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CareTrust REIT	$324.14 million	25.34	$125.08 million	$1.34	27.46
Healthpeak Properties	$2.70 billion	4.65	$243.14 million	($0.05)	-361.72

Healthpeak Properties has higher revenue and earnings than CareTrust REIT. Healthpeak Properties is trading at a lower price-to-earnings ratio than CareTrust REIT, indicating that it is currently the more affordable of the two stocks.

Summary

CareTrust REIT beats Healthpeak Properties on 10 of the 17 factors compared between the two stocks.

About CareTrust REIT

CareTrust REIT, Inc. is a self-administered, publicly-traded real estate investment trust engaged in the ownership, acquisition, development and leasing of skilled nursing, seniors housing and other healthcare-related properties. With a nationwide portfolio of long-term net-leased properties, and a growing portfolio of quality operators leasing them, CareTrust REIT is pursuing both external and organic growth opportunities across the United States.

About Healthpeak Properties

Healthpeak Properties, Inc. is a fully integrated real estate investment trust (REIT) and S&P 500 company. Healthpeak owns, operates, and develops high-quality real estate for healthcare discovery and delivery.