Critical Analysis: Aviv REIT (AVIV) & Care Capital Properties (CCP)

Aviv REIT (NYSE: AVIV) and Care Capital Properties (NYSE:CCP) are both financials companies, but which is the better business? We will contrast the two companies based on the strength of their risk, analyst recommendations, institutional ownership, valuation, profitability, earnings and dividends.

Analyst Ratings

This is a summary of current recommendations for Aviv REIT and Care Capital Properties, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Aviv REIT 0 0 0 0 N/A
Care Capital Properties 0 3 0 0 2.00

Care Capital Properties has a consensus target price of $22.50, suggesting a potential downside of 7.06%. Given Care Capital Properties’ higher probable upside, analysts plainly believe Care Capital Properties is more favorable than Aviv REIT.

Profitability

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

Net Margins Return on Equity Return on Assets
Aviv REIT 25.04% 6.86% 2.80%
Care Capital Properties 109.47% 40.07% 16.26%

Insider & Institutional Ownership

88.9% of Care Capital Properties shares are held by institutional investors. 1.7% of Care Capital Properties 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.

Dividends

Care Capital Properties pays an annual dividend of $2.28 per share and has a dividend yield of 9.4%. Aviv REIT does not pay a dividend. Care Capital Properties pays out 78.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Aviv REIT has increased its dividend for 3 consecutive years.

Earnings & Valuation

This table compares Aviv REIT and Care Capital Properties’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Aviv REIT N/A N/A N/A $0.75 48.91
Care Capital Properties N/A N/A N/A $2.90 8.35

Care Capital Properties is trading at a lower price-to-earnings ratio than Aviv REIT, indicating that it is currently the more affordable of the two stocks.

Summary

Care Capital Properties beats Aviv REIT on 8 of the 10 factors compared between the two stocks.

About Aviv REIT

Aviv REIT, Inc. (AVIV) is a real estate investment trust (REIT). The Company is engaged in investments in healthcare properties, consisting primarily of skilled nursing facilities (SNFs), assisted living facilities (ALFs), and other healthcare properties located in the United States. It specializes in the ownership and triple-net leasing of post-acute and long-term care SNFs. Its leases include rent escalation provisions. The Company is the general partner of Aviv Healthcare Properties Limited Partnership. Its portfolio consists of approximately 346 properties, comprising 285 skilled nursing facilities, 35 assisted living facilities, 14 traumatic brain injury facilities, two long-term acute care hospitals, one neuro hospital, two independent living facilities, two medical office buildings, and five land parcels for development, with approximately 29,646 beds in 30 states triple-net leased to 37 operators.

About Care Capital Properties

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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