Head-To-Head Comparison: Diversified Healthcare Trust (NASDAQ:DHCNI) vs. CareTrust REIT (NYSE:CTRE)
by Teresa Graham · The Cerbat GemCareTrust REIT (NYSE:CTRE – Get Free Report) and Diversified Healthcare Trust (NASDAQ:DHCNI – Get Free Report) are both real estate companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, valuation, earnings, dividends, risk, analyst recommendations and institutional ownership.
Insider & Institutional Ownership
87.8% of CareTrust REIT shares are held by institutional investors. 0.7% of CareTrust REIT shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Analyst Recommendations
This is a breakdown of recent recommendations and price targets for CareTrust REIT and Diversified Healthcare Trust, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| CareTrust REIT | 0 | 3 | 9 | 1 | 2.85 |
| Diversified Healthcare Trust | 0 | 0 | 0 | 0 | 0.00 |
CareTrust REIT presently has a consensus target price of $44.55, suggesting a potential upside of 12.31%. Given CareTrust REIT’s stronger consensus rating and higher possible upside, equities analysts clearly believe CareTrust REIT is more favorable than Diversified Healthcare Trust.
Profitability
This table compares CareTrust REIT and Diversified Healthcare Trust’s 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% |
| Diversified Healthcare Trust | N/A | N/A | N/A |
Earnings and Valuation
This table compares CareTrust REIT and Diversified Healthcare Trust”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 | 19.67 | $320.54 million | $1.59 | 24.94 |
| Diversified Healthcare Trust | N/A | N/A | N/A | N/A | N/A |
CareTrust REIT has higher revenue and earnings than Diversified Healthcare Trust.
Summary
CareTrust REIT beats Diversified Healthcare Trust on 10 of the 10 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.