Care Capital Properties (NYSE: CCP) is one of 26 public companies in the “Healthcare REITs” industry, but how does it weigh in compared to its rivals? We will compare Care Capital Properties to similar businesses based off the strength of its earnings, institutional ownership, analyst recommendations, profitability, valuation, dividends and risk.

Dividends

Care Capital Properties pays an annual dividend of $2.28 per share and has a dividend yield of 9.4%. Care Capital Properties pays out 121.3% 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, “Healthcare REITs” companies pay a dividend yield of 5.0% and pay out 124.4% of their earnings in the form of a dividend. Care Capital Properties is clearly a better dividend stock than its rivals, given its higher yield and lower payout ratio.

Analyst Recommendations

This is a summary of current ratings for Care Capital Properties and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Care Capital Properties 0 3 1 0 2.25
Care Capital Properties Competitors 201 822 672 12 2.29

Care Capital Properties presently has a consensus price target of $26.00, indicating a potential upside of 7.39%. All “Healthcare REITs” companies have a potential downside of 0.52%. Given Care Capital Properties’ higher possible upside, equities research analysts clearly believe Care Capital Properties is more favorable than its rivals.

Volatility and Risk

Care Capital Properties has a beta of 0.38, suggesting that its stock price is 62% less volatile than the S&P 500. Comparatively, Care Capital Properties’ rivals have a beta of 0.50, suggesting that their average stock price is 50% less volatile than the S&P 500.

Earnings & Valuation

This table compares Care Capital Properties and its rivals revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Care Capital Properties N/A N/A 12.88
Care Capital Properties Competitors $788.38 million $482.52 million 40.87

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

Profitability

This table compares Care Capital Properties and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Care Capital Properties 109.47% 40.07% 16.26%
Care Capital Properties Competitors 38.21% 7.68% 3.77%

Insider and Institutional Ownership

88.9% of Care Capital Properties shares are owned by institutional investors. Comparatively, 84.4% of shares of all “Healthcare REITs” companies are owned by institutional investors. 1.7% of Care Capital Properties shares are owned by insiders. Comparatively, 2.1% of shares of all “Healthcare REITs” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

Care Capital Properties beats its rivals on 7 of the 13 factors compared.

Care Capital Properties Company Profile

Care Capital Properties, Inc. is a self-administered, self-managed real estate investment trust with a diversified portfolio of skilled nursing facilities (SNFs) and other healthcare assets operated by private regional and local care providers. The Company leases its properties to unaffiliated tenants under long-term triple-net leases, pursuant to which the tenants are obligated to pay all property-related expenses, including maintenance, utilities, repairs and taxes. It also manages a small portfolio of secured and unsecured loans, made primarily to its SNF operators and other post-acute care providers. As of December 31, 2016, its portfolio consisted of 345 properties operated by 38 private regional and local care providers, spread across 36 states and containing a total of approximately 38,000 beds/units. It conducts all of its operations through its operating partnership, Care Capital Properties, LP, and its subsidiaries.

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