Community Healthcare Trust (NYSE:CHCT) vs. Americold Realty Trust (NYSE:COLD) Financial Contrast

Community Healthcare Trust (NYSE:CHCT) and Americold Realty Trust (NYSE:COLD) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, profitability, institutional ownership, risk, analyst recommendations, earnings and valuation.

Insider & Institutional Ownership

87.8% of Community Healthcare Trust shares are owned by institutional investors. Comparatively, 98.1% of Americold Realty Trust shares are owned by institutional investors. 5.3% of Community Healthcare Trust shares are owned by company insiders. Comparatively, 0.4% of Americold Realty Trust shares are owned 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.

Dividends

Community Healthcare Trust pays an annual dividend of $1.92 per share and has a dividend yield of 10.8%. Americold Realty Trust pays an annual dividend of $0.92 per share and has a dividend yield of 6.3%. Community Healthcare Trust pays out 1,745.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Americold Realty Trust pays out -235.9% of its earnings in the form of a dividend. Community Healthcare Trust has increased its dividend for 3 consecutive years and Americold Realty Trust has increased its dividend for 1 consecutive years. Community Healthcare Trust is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares Community Healthcare Trust and Americold Realty Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Community Healthcare Trust	4.94%	1.41%	0.61%
Americold Realty Trust	-4.29%	-3.73%	-1.38%

Analyst Recommendations

This is a breakdown of current ratings for Community Healthcare Trust and Americold Realty Trust, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Community Healthcare Trust	0	3	1	0	2.25
Americold Realty Trust	4	9	3	0	1.94

Community Healthcare Trust presently has a consensus target price of $18.33, indicating a potential upside of 2.68%. Americold Realty Trust has a consensus target price of $14.71, indicating a potential upside of 0.42%. Given Community Healthcare Trust’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Community Healthcare Trust is more favorable than Americold Realty Trust.

Risk and Volatility

Community Healthcare Trust has a beta of 0.73, indicating that its share price is 27% less volatile than the S&P 500. Comparatively, Americold Realty Trust has a beta of 0.97, indicating that its share price is 3% less volatile than the S&P 500.

Valuation and Earnings

This table compares Community Healthcare Trust and Americold Realty Trust”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Community Healthcare Trust	$121.19 million	4.21	$5.10 million	$0.11	162.32
Americold Realty Trust	$2.60 billion	1.61	-$114.55 million	($0.39)	-37.57

Community Healthcare Trust has higher earnings, but lower revenue than Americold Realty Trust. Americold Realty Trust 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.

Summary

Community Healthcare Trust beats Americold Realty Trust on 12 of the 17 factors compared between the two stocks.

About Community Healthcare Trust

Community Healthcare Trust Incorporated (the Company”, we”, our”) was organized in the State of Maryland on March 28, 2014. The Company is a fully-integrated healthcare real estate company that owns and acquires real estate properties that are leased to hospitals, doctors, healthcare systems or other healthcare service providers. As of March 31, 2024, the Company had investments of approximately $1.1 billion in 197 real estate properties (including a portion of one property accounted for as a sales-type lease with a gross amount totaling approximately $3.0 million and two properties classified as an asset held for sale with an aggregate amount totaling approximately $7.5 million. The properties are located in 35 states, totaling approximately 4.4 million square feet in the aggregate and were approximately 92.3% leased, excluding real estate assets held for sale, at March 31, 2024 with a weighted average remaining lease term of approximately 6.9 years.

About Americold Realty Trust

Americold Realty Trust, Inc. is a real estate investment trust, which focuses on the ownership, operation, development, and acquisition of temperature-controlled warehouses. It operates through the following segments: Warehouse, Third-Party Managed, Transportation, and Other. The Warehouse segment collects rent and storage fees from customers to store frozen and perishable food and other products within the firm’s real estate portfolio. The Third-Party Managed segment manages warehouses on behalf of third parties and provides warehouse management services to food retailers and manufacturers in customer-owned facilities. The Transportation segment is involved in brokering and managing transportation of frozen and perishable food and other products. The Other segment includes ownership in a limestone quarry in Carthage, Missouri. The company was founded in 1931 and is headquartered in Atlanta, GA.