Analyzing Community Healthcare Trust (NYSE:CHCT) and National Health Investors (NYSE:NHI)

National Health Investors (NYSE:NHI) and Community Healthcare Trust (NYSE:CHCT) are both real estate companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, analyst recommendations, dividends, profitability, valuation, institutional ownership and earnings.

Volatility and Risk

National Health Investors has a beta of 0.51, indicating that its stock price is 49% less volatile than the S&P 500. Comparatively, Community Healthcare Trust has a beta of 0.68, indicating that its stock price is 32% less volatile than the S&P 500.

Institutional & Insider Ownership

62.5% of National Health Investors shares are held by institutional investors. Comparatively, 87.8% of Community Healthcare Trust shares are held by institutional investors. 2.7% of National Health Investors shares are held by insiders. Comparatively, 5.3% of Community Healthcare Trust shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Earnings and Valuation

This table compares National Health Investors and Community Healthcare Trust”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
National Health Investors	$375.63 million	8.46	$142.18 million	$14.24	4.54
Community Healthcare Trust	$121.19 million	3.48	$5.10 million	$0.73	20.13

National Health Investors has higher revenue and earnings than Community Healthcare Trust. National Health Investors 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.

Dividends

National Health Investors pays an annual dividend of $3.76 per share and has a dividend yield of 5.8%. Community Healthcare Trust pays an annual dividend of $1.32 per share and has a dividend yield of 9.0%. National Health Investors pays out 26.4% of its earnings in the form of a dividend. Community Healthcare Trust pays out 180.8% 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 raised 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.

Profitability

This table compares National Health Investors and Community Healthcare Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
National Health Investors	152.82%	41.41%	23.42%
Community Healthcare Trust	17.76%	5.34%	2.24%

Analyst Recommendations

This is a summary of current ratings and target prices for National Health Investors and Community Healthcare Trust, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
National Health Investors	0	4	4	1	2.67
Community Healthcare Trust	1	2	2	0	2.20

National Health Investors currently has a consensus target price of $81.00, suggesting a potential upside of 25.25%. Community Healthcare Trust has a consensus target price of $17.50, suggesting a potential upside of 19.10%. Given National Health Investors’ stronger consensus rating and higher probable upside, analysts clearly believe National Health Investors is more favorable than Community Healthcare Trust.

Summary

National Health Investors beats Community Healthcare Trust on 12 of the 18 factors compared between the two stocks.

About National Health Investors

National Health Investors, Inc. (NYSE: NHI) is a real estate investment trust that owns and finances properties used for senior housing and health care. Founded in 1991, the company is headquartered in Murfreesboro, Tennessee. NHI’s portfolio includes senior housing communities, such as independent living, assisted living and memory care properties, as well as skilled nursing facilities. It typically works with health care operators through property leases and mortgage loans. The company serves markets across the United States.

About Community Healthcare Trust

Community Healthcare Trust is a real estate investment trust that acquires, owns and leases properties used to provide healthcare services. Its portfolio includes medical office buildings and other outpatient facilities occupied by healthcare providers. The company’s properties support a range of services, including physician practices, ambulatory care and other medical specialties. Community Healthcare Trust focuses on markets across the United States, including smaller and non-urban communities.