Caretrust REIT (CTRE) versus Welltower (NYSE:WELL) Head to Head Comparison

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

Profitability

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
Caretrust REIT 19.46% 4.37% 2.40%
Welltower 12.13% 4.35% 2.24%

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Caretrust REIT and Welltower, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Caretrust REIT 0 4 6 0 2.60
Welltower 2 8 4 0 2.14

Caretrust REIT currently has a consensus target price of $17.70, indicating a potential upside of 30.92%. Welltower has a consensus target price of $64.42, indicating a potential upside of 17.70%. Given Caretrust REIT’s stronger consensus rating and higher probable upside, analysts plainly believe Caretrust REIT is more favorable than Welltower.

Institutional & Insider Ownership

91.4% of Caretrust REIT shares are held by institutional investors. Comparatively, 86.1% of Welltower shares are held by institutional investors. 1.6% of Caretrust REIT shares are held by insiders. Comparatively, 0.2% of Welltower shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Caretrust REIT and Welltower’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Caretrust REIT $132.98 million 7.74 $25.87 million $1.16 11.66
Welltower $4.32 billion 4.71 $522.77 million $4.21 13.00

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

Dividends

Caretrust REIT pays an annual dividend of $0.82 per share and has a dividend yield of 6.1%. Welltower pays an annual dividend of $3.48 per share and has a dividend yield of 6.4%. Caretrust REIT pays out 70.7% of its earnings in the form of a dividend. Welltower pays out 82.7% 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

Caretrust REIT has a beta of 0.7, suggesting that its stock price is 30% less volatile than the S&P 500. Comparatively, Welltower has a beta of 0.2, suggesting that its stock price is 80% less volatile than the S&P 500.

Summary

Caretrust REIT beats Welltower on 11 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.

About Welltower

Welltower Inc. (NYSE:HCN), an S&P 500 company headquartered in Toledo, Ohio, is driving the transformation of health care infrastructure. The company invests with leading seniors housing operators, post-acute providers and health systems to fund the real estate infrastructure needed to scale innovative care delivery models and improve people's wellness and overall health care experience. Welltower?, a real estate investment trust ("REIT"), owns interests in properties concentrated in major, high-growth markets in the United States, Canada and the United Kingdom, consisting of seniors housing and post-acute communities and outpatient medical properties. More information is available at www.welltower.com.

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