Reviewing National Healthcare Properties (NASDAQ:NHP) & CareTrust REIT (NYSE:CTRE)

CareTrust REIT (NYSE:CTRE) and National Healthcare Properties (NASDAQ:NHP) are both real estate companies, but which is the superior investment? We will contrast the two companies based on the strength of their analyst recommendations, risk, valuation, earnings, profitability, institutional ownership and dividends.

Dividends

CareTrust REIT pays an annual dividend of $1.56 per share and has a dividend yield of 4.4%. National Healthcare Properties pays an annual dividend of $0.30 per share and has a dividend yield of 2.0%. CareTrust REIT pays out 98.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. National Healthcare Properties pays out -230.8% of its earnings in the form of a dividend. CareTrust REIT has increased its dividend for 3 consecutive years. CareTrust REIT is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Earnings and Valuation

This table compares CareTrust REIT and National Healthcare Properties”s top-line 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	17.75	$320.54 million	$1.59	22.50
National Healthcare Properties	$342.28 million	3.24	-$57.62 million	($0.13)	-116.85

CareTrust REIT has higher revenue and earnings than National Healthcare Properties. National Healthcare 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
CareTrust REIT	62.19%	8.52%	6.64%
National Healthcare Properties	-13.04%	-6.22%	-2.52%

Insider and Institutional Ownership

87.8% of CareTrust REIT shares are held by institutional investors. 0.7% of CareTrust REIT shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for CareTrust REIT and National Healthcare Properties, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CareTrust REIT	0	3	10	1	2.86
National Healthcare Properties	1	5	6	0	2.42

CareTrust REIT currently has a consensus target price of $44.25, indicating a potential upside of 23.68%. National Healthcare Properties has a consensus target price of $18.22, indicating a potential upside of 19.96%. Given CareTrust REIT’s stronger consensus rating and higher possible upside, analysts plainly believe CareTrust REIT is more favorable than National Healthcare Properties.

Summary

CareTrust REIT beats National Healthcare Properties on 16 of the 17 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 National Healthcare Properties

National Healthcare Properties Inc. is a self-managed real estate investment trust focused on acquiring, owning and investing in a diversified portfolio of healthcare real estate, with an emphasis on providing senior housing. National Healthcare Properties Inc. is based in NEW YORK.