CareTrust REIT (CTRE) & Ventas (VTR) Financial Comparison

CareTrust REIT (NASDAQ: CTRE) and Ventas (NYSE:VTR) are both finance companies, but which is the better business? We will contrast the two companies based on the strength of their profitabiliy, institutional ownership, valuation, dividends, risk, analyst recommendations and earnings.

Valuation and Earnings

This table compares CareTrust REIT and Ventas’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
CareTrust REIT $111.66 million 12.53 $91.06 million $0.55 35.07
Ventas $3.48 billion 7.21 $1.85 billion $1.97 35.91

Ventas has higher revenue and earnings than CareTrust REIT. CareTrust REIT is trading at a lower price-to-earnings ratio than Ventas, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares CareTrust REIT and Ventas’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CareTrust REIT 30.57% 7.87% 3.86%
Ventas 20.10% 6.34% 2.83%

Dividends

Ventas pays an annual dividend of $3.10 per share and has a dividend yield of 4.4%. CareTrust REIT does not pay a dividend. Ventas pays out 157.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. CareTrust REIT has raised its dividend for 6 consecutive years.

Institutional & Insider Ownership

86.9% of CareTrust REIT shares are held by institutional investors. Comparatively, 91.3% of Ventas shares are held by institutional investors. 1.6% of CareTrust REIT shares are held by insiders. Comparatively, 1.3% of Ventas shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and recommmendations for CareTrust REIT and Ventas, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CareTrust REIT 0 5 3 0 2.38
Ventas 3 10 0 0 1.77

CareTrust REIT presently has a consensus target price of $17.67, suggesting a potential downside of 8.42%. Ventas has a consensus target price of $64.13, suggesting a potential downside of 9.35%. Given CareTrust REIT’s stronger consensus rating and higher possible upside, analysts clearly believe CareTrust REIT is more favorable than Ventas.

Volatility & Risk

CareTrust REIT has a beta of 0.9, indicating that its stock price is 10% less volatile than the S&P 500. Comparatively, Ventas has a beta of 0.13, indicating that its stock price is 87% less volatile than the S&P 500.

Summary

CareTrust REIT beats Ventas on 11 of the 17 factors compared between the two stocks.

CareTrust REIT Company Profile

CareTrust REIT, Inc. is a self-administered, self-managed real estate investment trust. The Company is engaged in the ownership, acquisition and leasing of healthcare-related properties. It makes investments in healthcare-related real estate assets. As of December 31, 2016, its real estate portfolio included 154 skilled nursing facilities (SNFs), SNF Campuses, assisted living facilities and independent living facilities. As of December 31, 2016, the 93 facilities leased to The Ensign Group, Inc. had a total of 9,916 beds and units and are located in Arizona, California, Colorado, Idaho, Iowa, Nebraska, Nevada, Texas, Utah and Washington; the 16 facilities leased to affiliates of Pristine Senior Living, LLC had a total of 1,488 beds and units; and the 42 remaining leased properties had a total of 3,515 beds and units and are located in California, Colorado, Florida, Georgia, Idaho, Indiana, Iowa, Maryland, Michigan, Minnesota, North Carolina, Texas, Virginia, Washington and Wisconsin.

Ventas Company Profile

Ventas, Inc. is a real estate investment trust (REIT) with its properties located throughout the United States, Canada and the United Kingdom. The Company operates through three segments: triple-net leased properties, senior living operations and office operations. Under its triple-net leased properties segment, the Company invests in and owns seniors housing and healthcare properties throughout the United States and the United Kingdom and leases those properties to healthcare operating companies under triple-net or absolute-net leases that obligate the tenants to pay all property-related expenses. In its senior living operations segment, it invests in seniors housing communities throughout the United States and Canada and engages independent operators to manage those communities. In its office operations segment, the Company primarily acquires, owns, develops, leases and manages medical office buildings (MOBs) and life science and innovation centers throughout the United States.

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