Head-To-Head Survey: CareTrust REIT (CTRE) vs. Its Peers

CareTrust REIT (NYSE:CTRE) is one of 111 public companies in the “REIT – EQTY TRUST – OTHER” industry, but how does it weigh in compared to its peers? We will compare CareTrust REIT to similar companies based on the strength of its profitability, risk, institutional ownership, earnings, dividends, valuation and analyst recommendations.

Profitability

This table compares CareTrust REIT and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CareTrust REIT	58.90%	7.60%	5.90%
CareTrust REIT Competitors	-0.90%	-3.58%	0.85%

Dividends

CareTrust REIT pays an annual dividend of $1.34 per share and has a dividend yield of 3.8%. CareTrust REIT pays out 111.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “REIT – EQTY TRUST – OTHER” companies pay a dividend yield of 5.0% and pay out -52.2% of their earnings in the form of a dividend. CareTrust REIT lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.

Analyst Ratings

This is a breakdown of current ratings and price targets for CareTrust REIT and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CareTrust REIT	0	1	1	0	2.50
CareTrust REIT Competitors	1944	7256	7851	244	2.37

As a group, “REIT – EQTY TRUST – OTHER” companies have a potential upside of 16.69%. Given CareTrust REIT’s peers higher probable upside, analysts plainly believe CareTrust REIT has less favorable growth aspects than its peers.

Earnings & Valuation

This table compares CareTrust REIT and its peers top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
CareTrust REIT	$296.29 million	$125.08 million	29.34
CareTrust REIT Competitors	$1.51 billion	$127.62 million	68.34

CareTrust REIT’s peers have higher revenue and earnings than CareTrust REIT. CareTrust REIT is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Volatility & Risk

CareTrust REIT has a beta of 0.81, meaning that its share price is 19% less volatile than the S&P 500. Comparatively, CareTrust REIT’s peers have a beta of 1.17, meaning that their average share price is 17% more volatile than the S&P 500.

Insider & Institutional Ownership

87.8% of CareTrust REIT shares are owned by institutional investors. Comparatively, 75.9% of shares of all “REIT – EQTY TRUST – OTHER” companies are owned by institutional investors. 0.5% of CareTrust REIT shares are owned by company insiders. Comparatively, 5.8% of shares of all “REIT – EQTY TRUST – OTHER” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

CareTrust REIT peers beat CareTrust REIT on 9 of the 15 factors compared.

CareTrust REIT Company Profile

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.