Contrasting CareTrust REIT (CTRE) and The Competition

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

Insider & Institutional Ownership

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

Earnings & Valuation

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

	Gross Revenue	Net Income	Price/Earnings Ratio
CareTrust REIT	$324.14 million	$125.08 million	26.99
CareTrust REIT Competitors	$1.52 billion	$127.62 million	69.97

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.

Dividends

CareTrust REIT pays an annual dividend of $1.34 per share and has a dividend yield of 3.7%. CareTrust REIT pays out 100.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “REIT – EQTY TRUST – OTHER” companies pay a dividend yield of 4.9% and pay out -50.6% 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.

Risk & Volatility

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

Analyst Recommendations

This is a summary of current ratings and target prices for CareTrust REIT and its peers, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CareTrust REIT	0	1	1	0	2.50
CareTrust REIT Competitors	1973	7303	7870	246	2.37

As a group, “REIT – EQTY TRUST – OTHER” companies have a potential upside of 14.11%. Given CareTrust REIT’s peers higher possible upside, analysts clearly believe CareTrust REIT has less favorable growth aspects than its peers.

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	61.00%	7.95%	6.13%
CareTrust REIT Competitors	-0.64%	-3.66%	0.78%

Summary

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

About CareTrust REIT

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.