Head to Head Analysis: CareTrust REIT (NYSE:CTRE) and Healthpeak Properties (NYSE:DOC)

Healthpeak Properties (NYSE:DOC) and CareTrust REIT (NYSE:CTRE) are both finance companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, risk, analyst recommendations, earnings, institutional ownership, valuation and dividends.

Dividends

Healthpeak Properties pays an annual dividend of $1.22 per share and has a dividend yield of 6.8%. CareTrust REIT pays an annual dividend of $1.34 per share and has a dividend yield of 3.6%. Healthpeak Properties pays out -2,440.0% of its earnings in the form of a dividend. 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. Healthpeak Properties is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares Healthpeak Properties and CareTrust REIT’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Healthpeak Properties	-1.36%	-0.44%	-0.19%
CareTrust REIT	61.00%	7.95%	6.13%

Analyst Recommendations

This is a summary of current ratings and price targets for Healthpeak Properties and CareTrust REIT, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Healthpeak Properties	1	6	6	0	2.38
CareTrust REIT	0	1	2	1	3.00

Healthpeak Properties currently has a consensus price target of $19.67, suggesting a potential upside of 10.24%. CareTrust REIT has a consensus price target of $43.00, suggesting a potential upside of 13.97%. Given CareTrust REIT’s stronger consensus rating and higher probable upside, analysts clearly believe CareTrust REIT is more favorable than Healthpeak Properties.

Volatility & Risk

Healthpeak Properties has a beta of 1.12, meaning that its share price is 12% more volatile than the S&P 500. Comparatively, CareTrust REIT has a beta of 0.75, meaning that its share price is 25% less volatile than the S&P 500.

Institutional and Insider Ownership

93.6% of Healthpeak Properties shares are owned by institutional investors. Comparatively, 87.8% of CareTrust REIT shares are owned by institutional investors. 0.2% of Healthpeak Properties shares are owned by company insiders. Comparatively, 0.5% of CareTrust REIT shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Healthpeak Properties and CareTrust REIT”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Healthpeak Properties	$2.70 billion	4.59	$243.14 million	($0.05)	-356.80
CareTrust REIT	$296.29 million	28.44	$125.08 million	$1.34	28.16

Healthpeak Properties has higher revenue and earnings than CareTrust REIT. Healthpeak Properties is trading at a lower price-to-earnings ratio than CareTrust REIT, indicating that it is currently the more affordable of the two stocks.

Summary

CareTrust REIT beats Healthpeak Properties on 10 of the 17 factors compared between the two stocks.

About Healthpeak Properties

Healthpeak Properties, Inc. is a fully integrated real estate investment trust (REIT) and S&P 500 company. Healthpeak owns, operates, and develops high-quality real estate for healthcare discovery and delivery.

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.