Financial Analysis: Community Healthcare Trust (NYSE:CHCT) vs. FrontView REIT (NYSE:FVR)

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

Insider & Institutional Ownership

87.8% of Community Healthcare Trust shares are held by institutional investors. 9.6% of FrontView REIT shares are held by insiders. Comparatively, 5.3% of Community Healthcare Trust shares are held 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.

Dividends

FrontView REIT pays an annual dividend of $0.86 per share and has a dividend yield of 4.0%. Community Healthcare Trust pays an annual dividend of $1.92 per share and has a dividend yield of 10.1%. FrontView REIT pays out -537.5% of its earnings in the form of a dividend. Community Healthcare Trust pays out 1,745.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Community Healthcare Trust has increased its dividend for 3 consecutive years. Community Healthcare Trust is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Earnings and Valuation

This table compares FrontView REIT and Community Healthcare Trust”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
FrontView REIT	$67.11 million	7.29	-$3.83 million	($0.16)	-134.98
Community Healthcare Trust	$121.19 million	4.46	$5.10 million	$0.11	172.12

Community Healthcare Trust has higher revenue and earnings than FrontView REIT. FrontView REIT 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 summary of recent ratings and target prices for FrontView REIT and Community Healthcare Trust, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
FrontView REIT	1	3	7	2	2.77
Community Healthcare Trust	0	3	2	0	2.40

FrontView REIT presently has a consensus target price of $21.83, indicating a potential upside of 1.09%. Community Healthcare Trust has a consensus target price of $19.25, indicating a potential upside of 1.67%. Given Community Healthcare Trust’s higher possible upside, analysts plainly believe Community Healthcare Trust is more favorable than FrontView REIT.

Profitability

This table compares FrontView REIT and Community Healthcare Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
FrontView REIT	-3.88%	-0.53%	-0.31%
Community Healthcare Trust	4.94%	1.41%	0.61%

Volatility & Risk

FrontView REIT has a beta of 1.08, indicating that its share price is 8% more volatile than the S&P 500. Comparatively, Community Healthcare Trust has a beta of 0.71, indicating that its share price is 29% less volatile than the S&P 500.

Summary

Community Healthcare Trust beats FrontView REIT on 11 of the 18 factors compared between the two stocks.

About FrontView REIT

FrontView REIT specializes in real estate investing.

About Community Healthcare Trust

Community Healthcare Trust Incorporated (the Company”, we”, our”) was organized in the State of Maryland on March 28, 2014. The Company is a fully-integrated healthcare real estate company that owns and acquires real estate properties that are leased to hospitals, doctors, healthcare systems or other healthcare service providers. As of March 31, 2024, the Company had investments of approximately $1.1 billion in 197 real estate properties (including a portion of one property accounted for as a sales-type lease with a gross amount totaling approximately $3.0 million and two properties classified as an asset held for sale with an aggregate amount totaling approximately $7.5 million. The properties are located in 35 states, totaling approximately 4.4 million square feet in the aggregate and were approximately 92.3% leased, excluding real estate assets held for sale, at March 31, 2024 with a weighted average remaining lease term of approximately 6.9 years.