Critical Survey: Community Healthcare Trust (NYSE:CHCT) versus Sila Realty Trust (NYSE:SILA)

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

Institutional & Insider Ownership

87.8% of Community Healthcare Trust shares are held by institutional investors. 5.3% of Community Healthcare Trust shares are held by insiders. Comparatively, 0.8% of Sila Realty Trust shares 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.

Analyst Ratings

This is a breakdown of current ratings and target prices for Community Healthcare Trust and Sila Realty Trust, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Community Healthcare Trust	0	3	1	0	2.25
Sila Realty Trust	0	5	1	0	2.17

Community Healthcare Trust presently has a consensus price target of $18.00, suggesting a potential upside of 1.53%. Sila Realty Trust has a consensus price target of $29.00, suggesting a potential downside of 4.02%. Given Community Healthcare Trust’s stronger consensus rating and higher possible upside, equities analysts plainly believe Community Healthcare Trust is more favorable than Sila Realty Trust.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Community Healthcare Trust	4.94%	1.41%	0.61%
Sila Realty Trust	18.64%	2.81%	1.81%

Volatility & Risk

Community Healthcare Trust has a beta of 0.73, suggesting that its stock price is 27% less volatile than the S&P 500. Comparatively, Sila Realty Trust has a beta of 1.01, suggesting that its stock price is 1% more volatile than the S&P 500.

Dividends

Community Healthcare Trust pays an annual dividend of $1.92 per share and has a dividend yield of 10.8%. Sila Realty Trust pays an annual dividend of $1.60 per share and has a dividend yield of 5.3%. Community Healthcare Trust pays out 1,745.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Sila Realty Trust pays out 238.8% 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 3 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 Community Healthcare Trust and Sila Realty Trust”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Community Healthcare Trust	$121.19 million	4.18	$5.10 million	$0.11	161.16
Sila Realty Trust	$197.54 million	8.45	$33.12 million	$0.67	45.10

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

Summary

Sila Realty Trust beats Community Healthcare Trust on 9 of the 16 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 Sila Realty Trust

Sila Realty Trust, Inc., headquartered in Tampa, Florida, is a net lease real estate investment trust with a strategic focus on investing in the large, growing, and resilient healthcare sector. The Company invests in high quality healthcare facilities along the continuum of care, which, we believe, generate predictable, durable, and growing income streams. Our portfolio comprises high quality tenants in geographically diverse facilities, which are positioned to capitalize on the dynamic delivery of healthcare to patients. As of June 30, 2024, the Company owned 137 real estate properties and two undeveloped land parcels located in 64 markets across the U.S.