Head to Head Contrast: CareTrust REIT (CTRE) and Its Rivals

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

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 -50.6% of their earnings in the form of a dividend. CareTrust REIT lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for CareTrust REIT and its competitors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CareTrust REIT	0	1	1	0	2.50
CareTrust REIT Competitors	1949	7278	7863	246	2.37

As a group, “REIT – EQTY TRUST – OTHER” companies have a potential upside of 15.35%. Given CareTrust REIT’s competitors higher probable upside, analysts clearly believe CareTrust REIT has less favorable growth aspects than its competitors.

Profitability

This table compares CareTrust REIT and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CareTrust REIT	61.00%	8.57%	6.55%
CareTrust REIT Competitors	-0.07%	-3.57%	0.86%

Valuation and Earnings

This table compares CareTrust REIT and its competitors revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
CareTrust REIT	$324.14 million	$125.08 million	26.97
CareTrust REIT Competitors	$1.51 billion	$127.62 million	67.97

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

Institutional and 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 company insiders. Comparatively, 5.8% of shares of all “REIT – EQTY TRUST – OTHER” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Risk & Volatility

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

Summary

CareTrust REIT competitors beat CareTrust REIT on 9 of the 15 factors compared.

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.