Analyzing CareTrust REIT (CTRE) and Its Peers

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

Institutional & Insider 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 insiders. Comparatively, 5.8% of shares of all “REIT – EQTY TRUST – OTHER” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Earnings & Valuation

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

	Gross Revenue	Net Income	Price/Earnings Ratio
CareTrust REIT	$296.29 million	$125.08 million	26.99
CareTrust REIT Competitors	$1.52 billion	$127.62 million	74.35

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

Profitability

This table compares CareTrust REIT and its rivals’ 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	-0.42%	-3.62%	0.82%

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 -53.0% of their earnings in the form of a dividend. CareTrust REIT lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Risk and Volatility

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

Analyst Recommendations

This is a breakdown of recent ratings and price targets for CareTrust REIT and its rivals, as reported 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	1968	7295	7869	246	2.37

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

Summary

CareTrust REIT rivals 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.