Community Healthcare Trust (NYSE:CHCT – Get Free Report) and UDR (NYSE:UDR – Get Free Report) are both finance companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, earnings, valuation, profitability, analyst recommendations and risk.
Risk & Volatility
Community Healthcare Trust has a beta of 0.69, suggesting that its stock price is 31% less volatile than the S&P 500. Comparatively, UDR has a beta of 0.85, suggesting that its stock price is 15% less volatile than the S&P 500.
Earnings & Valuation
This table compares Community Healthcare Trust and UDR”s revenue, earnings per share and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Community Healthcare Trust | $114.71 million | 4.06 | $7.71 million | $0.64 | 26.28 |
UDR | $1.63 billion | 9.35 | $444.35 million | $1.38 | 33.44 |
Dividends
Community Healthcare Trust pays an annual dividend of $1.85 per share and has a dividend yield of 11.0%. UDR pays an annual dividend of $1.70 per share and has a dividend yield of 3.7%. Community Healthcare Trust pays out 289.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. UDR pays out 123.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. UDR has raised its dividend for 14 consecutive years.
Profitability
This table compares Community Healthcare Trust and UDR’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Community Healthcare Trust | 1.13% | 0.25% | 0.13% |
UDR | 8.34% | 3.70% | 1.28% |
Institutional and Insider Ownership
87.8% of Community Healthcare Trust shares are owned by institutional investors. Comparatively, 97.8% of UDR shares are owned by institutional investors. 4.0% of Community Healthcare Trust shares are owned by company insiders. Comparatively, 3.7% of UDR shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Analyst Recommendations
This is a breakdown of current ratings and recommmendations for Community Healthcare Trust and UDR, as reported by MarketBeat.com.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Community Healthcare Trust | 0 | 2 | 1 | 0 | 2.33 |
UDR | 1 | 9 | 8 | 0 | 2.39 |
Community Healthcare Trust presently has a consensus target price of $20.75, suggesting a potential upside of 23.37%. UDR has a consensus target price of $44.28, suggesting a potential downside of 4.04%. Given Community Healthcare Trust’s higher possible upside, equities analysts plainly believe Community Healthcare Trust is more favorable than UDR.
Summary
UDR beats Community Healthcare Trust on 14 of the 17 factors compared between the two stocks.
About Community Healthcare Trust
Community Healthcare Trust Incorporated is a real estate investment trust that focuses on owning income-producing real estate properties associated primarily with the delivery of outpatient healthcare services in our target sub-markets throughout the United States. As of December 31, 2023, the Company had investments of approximately $1.1 billion in 193 real estate properties (including a portion of one property accounted for as a sales-type lease and two properties classified as held for sale). The properties are located in 34 states, totaling approximately 4.3 million square feet in the aggregate.
About UDR
UDR, Inc. (NYSE: UDR), an S&P 500 company, is a leading multifamily real estate investment trust with a demonstrated performance history of delivering superior and dependable returns by successfully managing, buying, selling, developing and redeveloping attractive real estate communities in targeted U.S. markets. As of December 31, 2023, UDR owned or had an ownership position in 60,336 apartment homes including 359 homes under development. For over 51 years, UDR has delivered long-term value to shareholders, the best standard of service to Residents and the highest quality experience for Associates.
Receive News & Ratings for Community Healthcare Trust Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Community Healthcare Trust and related companies with MarketBeat.com's FREE daily email newsletter.