Caretrust REIT (NASDAQ: CTRE) and Welltower (NYSE:WELL) are both financials companies, but which is the better business? We will compare the two businesses based on the strength of their risk, analyst recommendations, dividends, institutional ownership, profitability, valuation and earnings.
Earnings and Valuation
This table compares Caretrust REIT and Welltower’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Caretrust REIT||$132.98 million||8.01||$25.87 million||$0.36||38.86|
|Welltower||$4.32 billion||4.63||$522.77 million||$0.32||168.00|
This table compares Caretrust REIT and Welltower’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Volatility & Risk
Caretrust REIT has a beta of 0.74, indicating that its share price is 26% less volatile than the S&P 500. Comparatively, Welltower has a beta of 0.28, indicating that its share price is 72% less volatile than the S&P 500.
Caretrust REIT pays an annual dividend of $0.74 per share and has a dividend yield of 5.3%. Welltower pays an annual dividend of $3.48 per share and has a dividend yield of 6.5%. Caretrust REIT pays out 205.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Welltower pays out 1,087.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
This is a breakdown of recent recommendations and price targets for Caretrust REIT and Welltower, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Caretrust REIT presently has a consensus price target of $18.20, suggesting a potential upside of 30.09%. Welltower has a consensus price target of $65.69, suggesting a potential upside of 22.20%. Given Caretrust REIT’s stronger consensus rating and higher probable upside, analysts clearly believe Caretrust REIT is more favorable than Welltower.
Insider and Institutional Ownership
91.4% of Caretrust REIT shares are owned by institutional investors. Comparatively, 86.1% of Welltower shares are owned by institutional investors. 1.6% of Caretrust REIT shares are owned by insiders. Comparatively, 0.2% of Welltower shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Caretrust REIT beats Welltower on 12 of the 16 factors compared between the two stocks.
About Caretrust REIT
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.
Welltower Inc. invests with seniors housing operators, post-acute providers and health systems to fund real estate and infrastructure. The Company invests in seniors housing and healthcare real estate. It operates in three segments: triple-net, seniors housing operating and outpatient medical. Welltower, a real estate investment trust (REIT), owns interests in properties concentrated in markets in the United States, Canada and the United Kingdom, consisting of seniors housing and post-acute communities, and outpatient medical properties. Its triple-net properties include independent living facilities, independent supportive living facilities (Canada), continuing care retirement communities, assisted living facilities, care homes with and without nursing (the United Kingdom), Alzheimer’s/dementia care facilities, long-term/post-acute care facilities and hospitals. Its outpatient medical properties include outpatient medical buildings.
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