Head-To-Head Review: Apartment Investment and Management (NYSE:AIV) and Community Healthcare Trust (NYSE:CHCT)

Apartment Investment and Management (NYSE:AIV) and Community Healthcare Trust (NYSE:CHCT) are both small-cap finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, dividends, risk, earnings, analyst recommendations, valuation and institutional ownership.

Earnings and Valuation

This table compares Apartment Investment and Management and Community Healthcare Trust’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Apartment Investment and Management	$186.99 million	6.35	-$166.20 million	($1.17)	-7.01
Community Healthcare Trust	$115.00 million	5.87	$7.71 million	$0.64	38.07

Community Healthcare Trust has lower revenue, but higher earnings than Apartment Investment and Management. Apartment Investment and Management 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.

Volatility and Risk

Apartment Investment and Management has a beta of 1.3, indicating that its share price is 30% more volatile than the S&P 500. Comparatively, Community Healthcare Trust has a beta of 0.64, indicating that its share price is 36% less volatile than the S&P 500.

Profitability

This table compares Apartment Investment and Management and Community Healthcare Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Apartment Investment and Management	-88.87%	-30.04%	-7.60%
Community Healthcare Trust	15.91%	3.57%	1.93%

Insider & Institutional Ownership

83.3% of Apartment Investment and Management shares are owned by institutional investors. Comparatively, 87.8% of Community Healthcare Trust shares are owned by institutional investors. 2.2% of Apartment Investment and Management shares are owned by company insiders. Comparatively, 4.0% of Community Healthcare Trust 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.

Analyst Recommendations

This is a breakdown of recent recommendations for Apartment Investment and Management and Community Healthcare Trust, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Apartment Investment and Management	0	1	0	0	2.00
Community Healthcare Trust	0	3	1	0	2.25

Community Healthcare Trust has a consensus price target of $30.33, suggesting a potential upside of 24.50%. Given Community Healthcare Trust’s stronger consensus rating and higher possible upside, analysts clearly believe Community Healthcare Trust is more favorable than Apartment Investment and Management.

Summary

Community Healthcare Trust beats Apartment Investment and Management on 11 of the 14 factors compared between the two stocks.

About Apartment Investment and Management

Aimco is a diversified real estate company primarily focused on value add and opportunistic investments, targeting the U.S. multifamily sector. Aimco's mission is to make real estate investments where outcomes are enhanced through our human capital so that substantial value is created for investors, teammates, and the communities in which we operate. Aimco is traded on the New York Stock Exchange as AIV.

About Community Healthcare Trust

Community Healthcare Trust Incorporated is a real estate investment trust that focuses on owning income-producing real estate properties associated primarily with the delivery of outpatient healthcare services in our target sub-markets throughout the United States. As of December 31, 2023, the Company had investments of approximately $1.1 billion in 193 real estate properties (including a portion of one property accounted for as a sales-type lease and two properties classified as held for sale). The properties are located in 34 states, totaling approximately 4.3 million square feet in the aggregate.