CareTrust REIT (NYSE:CTRE – Get Free Report) and Seritage Growth Properties (NYSE:SRG – Get Free Report) are both finance companies, but which is the better stock? We will compare the two companies based on the strength of their risk, profitability, earnings, institutional ownership, analyst recommendations, valuation and dividends.
Analyst Ratings
This is a breakdown of recent ratings and target prices for CareTrust REIT and Seritage Growth Properties, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| CareTrust REIT | 1 | 1 | 7 | 3 | 3.00 |
| Seritage Growth Properties | 1 | 0 | 0 | 0 | 1.00 |
CareTrust REIT currently has a consensus target price of $42.90, indicating a potential upside of 17.04%. Given CareTrust REIT’s stronger consensus rating and higher possible upside, analysts plainly believe CareTrust REIT is more favorable than Seritage Growth Properties.
Risk & Volatility
Profitability
This table compares CareTrust REIT and Seritage Growth Properties’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| CareTrust REIT | 67.28% | 8.98% | 6.83% |
| Seritage Growth Properties | -404.37% | -20.13% | -12.10% |
Institutional & Insider Ownership
87.8% of CareTrust REIT shares are held by institutional investors. Comparatively, 78.9% of Seritage Growth Properties shares are held by institutional investors. 0.7% of CareTrust REIT shares are held by company insiders. Comparatively, 0.6% of Seritage Growth Properties shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Valuation and Earnings
This table compares CareTrust REIT and Seritage Growth Properties”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| CareTrust REIT | $476.39 million | 17.18 | $320.54 million | $1.55 | 23.65 |
| Seritage Growth Properties | $17.62 million | 8.52 | -$153.54 million | ($1.42) | -1.88 |
CareTrust REIT has higher revenue and earnings than Seritage Growth Properties. Seritage Growth 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 Seritage Growth Properties on 14 of the 15 factors compared between the two stocks.
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.
About Seritage Growth Properties
Seritage Growth Properties operates as a real estate investment trust. The firm engages in the acquisition, ownership, development, redevelopment, management, and leasing of retail properties throughout the United States. Its property portfolio includes mall, shopping centers and freestanding locations. The company was founded on June 3, 2015 and is headquartered in New York, NY.
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