Analyzing One Liberty Properties (NYSE:OLP) and Community Healthcare Trust (NYSE:CHCT)

Community Healthcare Trust (NYSE:CHCT) and One Liberty Properties (NYSE:OLP) are both small-cap finance companies, but which is the better business? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, dividends, risk, valuation and profitability.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Community Healthcare Trust and One Liberty Properties, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Community Healthcare Trust	0	2	1	0	2.33
One Liberty Properties	0	0	1	0	3.00

Community Healthcare Trust currently has a consensus price target of $21.25, suggesting a potential upside of 33.20%. One Liberty Properties has a consensus price target of $28.00, suggesting a potential upside of 15.62%. Given Community Healthcare Trust’s higher probable upside, equities research analysts plainly believe Community Healthcare Trust is more favorable than One Liberty Properties.

Valuation and Earnings

This table compares Community Healthcare Trust and One Liberty Properties”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Community Healthcare Trust	$115.79 million	3.90	$7.71 million	($0.23)	-69.36
One Liberty Properties	$90.56 million	5.77	$29.61 million	$1.40	17.30

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

Institutional and Insider Ownership

87.8% of Community Healthcare Trust shares are held by institutional investors. Comparatively, 36.2% of One Liberty Properties shares are held by institutional investors. 5.1% of Community Healthcare Trust shares are held by company insiders. Comparatively, 25.4% of One Liberty Properties shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Volatility and Risk

Community Healthcare Trust has a beta of 0.65, meaning that its share price is 35% less volatile than the S&P 500. Comparatively, One Liberty Properties has a beta of 1.11, meaning that its share price is 11% more volatile than the S&P 500.

Profitability

This table compares Community Healthcare Trust and One Liberty Properties’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Community Healthcare Trust	-2.75%	-0.65%	-0.32%
One Liberty Properties	38.96%	11.35%	4.58%

Dividends

Community Healthcare Trust pays an annual dividend of $1.87 per share and has a dividend yield of 11.7%. One Liberty Properties pays an annual dividend of $1.80 per share and has a dividend yield of 7.4%. Community Healthcare Trust pays out -813.0% of its earnings in the form of a dividend. One Liberty Properties pays out 128.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Community Healthcare Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

One Liberty Properties beats Community Healthcare Trust on 10 of the 15 factors compared between the two stocks.

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.

About One Liberty Properties

One Liberty Properties, Inc. is a real estate investment trust, which engages in acquisition, ownership, and management of the geographically diversified portfolio consisting primarily of industrial, retail, restaurant, health and fitness, and theater properties, many of which are subject to long-term leases. The properties in the firm’s portfolio include net leases, long-term lease, and scheduled rent increases. The company was founded in December 1982 and is headquartered in Great Neck, NY.