Getty Realty (NYSE:GTY) vs. CareTrust REIT (NYSE:CTRE) Head-To-Head Survey

Getty Realty (NYSE:GTY) and CareTrust REIT (NYSE:CTRE) are both finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, dividends, risk, valuation, profitability and analyst recommendations.

Profitability

This table compares Getty Realty and CareTrust REIT’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Getty Realty	34.76%	7.60%	3.72%
CareTrust REIT	61.00%	7.95%	6.13%

Risk & Volatility

Getty Realty has a beta of 0.83, meaning that its stock price is 17% less volatile than the S&P 500. Comparatively, CareTrust REIT has a beta of 0.81, meaning that its stock price is 19% less volatile than the S&P 500.

Insider & Institutional Ownership

85.1% of Getty Realty shares are owned by institutional investors. Comparatively, 87.8% of CareTrust REIT shares are owned by institutional investors. 8.8% of Getty Realty shares are owned by company insiders. Comparatively, 0.5% of CareTrust REIT shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Getty Realty and CareTrust REIT”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Getty Realty	$214.19 million	7.42	$71.06 million	$1.28	21.50
CareTrust REIT	$296.29 million	27.51	$125.08 million	$1.34	27.24

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

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Getty Realty and CareTrust REIT, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Getty Realty	0	3	3	0	2.50
CareTrust REIT	0	1	1	0	2.50

Getty Realty presently has a consensus target price of $31.80, suggesting a potential upside of 15.54%. Given Getty Realty’s higher possible upside, equities analysts clearly believe Getty Realty is more favorable than CareTrust REIT.

Dividends

Getty Realty pays an annual dividend of $1.94 per share and has a dividend yield of 7.0%. CareTrust REIT pays an annual dividend of $1.34 per share and has a dividend yield of 3.7%. Getty Realty pays out 151.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. 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. Getty Realty has increased its dividend for 1 consecutive years. Getty Realty is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

CareTrust REIT beats Getty Realty on 10 of the 16 factors compared between the two stocks.

About Getty Realty

Getty Realty Corp. is a publicly traded, net lease REIT specializing in the acquisition, financing and development of convenience, automotive and other single tenant retail real estate. As of December 31, 2023, the Company’s portfolio included 1,093 freestanding properties located in 40 states across the United States and Washington, D.C.

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.