Analyzing Healthcare Trust of America (HTA) & Community Healthcare Trust (CHCT)

Healthcare Trust of America (NYSE: HTA) and Community Healthcare Trust (NYSE:CHCT) are both finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, valuation, dividends, risk, profitability, analyst recommendations and institutional ownership.

Dividends

Healthcare Trust of America pays an annual dividend of $1.22 per share and has a dividend yield of 4.1%. Community Healthcare Trust pays an annual dividend of $1.57 per share and has a dividend yield of 5.7%. Healthcare Trust of America pays out 581.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Community Healthcare Trust pays out 581.5% 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 4 consecutive years. Community Healthcare Trust is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Valuation & Earnings

This table compares Healthcare Trust of America and Community Healthcare Trust’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Healthcare Trust of America $504.67 million 11.83 $301.67 million $0.21 141.71
Community Healthcare Trust $30.77 million 11.27 $20.43 million $0.27 101.23

Healthcare Trust of America has higher revenue and earnings than Community Healthcare Trust. Community Healthcare Trust is trading at a lower price-to-earnings ratio than Healthcare Trust of America, indicating that it is currently the more affordable of the two stocks.

Profitability

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

Net Margins Return on Equity Return on Assets
Healthcare Trust of America 6.07% 1.42% 0.70%
Community Healthcare Trust 11.30% 1.81% 1.33%

Institutional and Insider Ownership

97.8% of Healthcare Trust of America shares are owned by institutional investors. Comparatively, 60.2% of Community Healthcare Trust shares are owned by institutional investors. 1.5% of Healthcare Trust of America shares are owned by insiders. Comparatively, 5.5% of Community Healthcare Trust shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Volatility & Risk

Healthcare Trust of America has a beta of 0.3, meaning that its share price is 70% less volatile than the S&P 500. Comparatively, Community Healthcare Trust has a beta of 1.02, meaning that its share price is 2% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Healthcare Trust of America and Community Healthcare Trust, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Healthcare Trust of America 0 1 7 1 3.00
Community Healthcare Trust 0 0 1 0 3.00

Healthcare Trust of America currently has a consensus price target of $34.00, indicating a potential upside of 14.25%. Community Healthcare Trust has a consensus price target of $26.50, indicating a potential downside of 3.04%. Given Healthcare Trust of America’s higher probable upside, analysts plainly believe Healthcare Trust of America is more favorable than Community Healthcare Trust.

Summary

Healthcare Trust of America beats Community Healthcare Trust on 9 of the 17 factors compared between the two stocks.

Healthcare Trust of America Company Profile

Healthcare Trust of America, Inc. is a real estate investment trust. The Company is an owner and operator of medical office buildings (MOBs) in the United States. The Company focuses on owning and operating MOBs that serve healthcare delivery and are located on health system campuses, near university medical centers, or in community core outpatient locations. As of December 31, 2016, the Company’s portfolio consisted of approximately 17.7 million square feet of gross leasable area. As of December 31, 2016, the Company’s portfolio included MOBs, such as single-tenant and multi-tenant, and other healthcare facilities, such as hospitals and senior care. As of December 31, 2016, the Company’s portfolio had 355 buildings located in 31 states. As of December 31, 2016, the Company’s properties were located in various states of the United States, such as Alabama, Arizona, California, Colorado, Florida, Georgia, Hawaii, Illinois, Indiana, Kansas, Maryland, Michigan, Minnesota, Nevada and Utah.

Community Healthcare Trust Company Profile

Community Healthcare Trust Incorporated is an integrated healthcare real estate company. The Company owns and acquires, or finances, real estate properties that are leased to hospitals, doctors, healthcare systems or other healthcare service providers in non-urban markets. It has investments in healthcare real estate, including mortgage and other loans. The Company’s medical office buildings are located in areas, such as, Florida, Georgia, Illinois, Kentucky, Ohio and Texas. Its physician clinics are located in Alabama, Florida, Kansas, Pennsylvania and Wisconsin. Its surgical centers and hospitals are located in areas, such as Louisiana, Michigan and Arizona. Its behavioral facilities are located in Indiana and Illinois. Its specialty centers are located in Texas, Colorado and Alabama, among others. As of December 31, 2016, the Company had interests in 57 real estate properties and one mortgage note, located in 22 states, totaling over 1.33 million square feet in the aggregate.

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