Analyzing Community Healthcare Trust (NYSE:CHCT) & Kilroy Realty (NYSE:KRC)

Kilroy Realty (NYSE:KRC) and Community Healthcare Trust (NYSE:CHCT) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, profitability, risk, analyst recommendations, dividends, institutional ownership and valuation.

Dividends

Kilroy Realty pays an annual dividend of $2.16 per share and has a dividend yield of 5.1%. Community Healthcare Trust pays an annual dividend of $1.86 per share and has a dividend yield of 10.1%. Kilroy Realty pays out 129.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Community Healthcare Trust pays out -2,066.7% of its earnings in the form of a dividend. Community Healthcare Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Kilroy Realty	17.78%	3.53%	1.73%
Community Healthcare Trust	-0.39%	-0.09%	-0.05%

Risk and Volatility

Kilroy Realty has a beta of 1.03, indicating that its stock price is 3% more volatile than the S&P 500. Comparatively, Community Healthcare Trust has a beta of 0.68, indicating that its stock price is 32% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Kilroy Realty and Community Healthcare Trust, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kilroy Realty	1	4	2	0	2.14
Community Healthcare Trust	0	2	1	0	2.33

Kilroy Realty currently has a consensus target price of $39.43, suggesting a potential downside of 6.37%. Community Healthcare Trust has a consensus target price of $21.00, suggesting a potential upside of 14.38%. Given Community Healthcare Trust’s stronger consensus rating and higher possible upside, analysts plainly believe Community Healthcare Trust is more favorable than Kilroy Realty.

Institutional & Insider Ownership

94.2% of Kilroy Realty shares are owned by institutional investors. Comparatively, 87.8% of Community Healthcare Trust shares are owned by institutional investors. 2.5% of Kilroy Realty shares are owned by company insiders. Comparatively, 4.0% of Community Healthcare Trust shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Kilroy Realty and Community 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
Kilroy Realty	$1.12 billion	4.45	$212.24 million	$1.67	25.22
Community Healthcare Trust	$115.61 million	4.49	$7.71 million	($0.09)	-204.00

Kilroy Realty has higher revenue and earnings than Community Healthcare Trust. Community Healthcare Trust is trading at a lower price-to-earnings ratio than Kilroy Realty, indicating that it is currently the more affordable of the two stocks.

Summary

Kilroy Realty beats Community Healthcare Trust on 10 of the 16 factors compared between the two stocks.

About Kilroy Realty

Kilroy Realty Corporation (NYSE: KRC, the company, Kilroy) is a leading U.S. landlord and developer, with operations in San Diego, Greater Los Angeles, the San Francisco Bay Area, Greater Seattle and Austin. The company has earned global recognition for sustainability, building operations, innovation and design. As a pioneer and innovator in the creation of a more sustainable real estate industry, the company's approach to modern business environments helps drive creativity and productivity for some of the world's leading technology, entertainment, life science and business services companies. The company is a publicly traded real estate investment trust (REIT) and member of the S&P MidCap 400 Index with more than seven decades of experience developing, acquiring and managing office, life science and mixed-use projects. As of December 31, 2023, Kilroy's stabilized portfolio totaled approximately 17.0 million square feet of primarily office and life science space that was 85.0% occupied and 86.4% leased. The company also had approximately 1,000 residential units in Hollywood and San Diego, which had a quarterly average occupancy of 92.5%. In addition, the company had two in-process life science redevelopment projects totaling approximately 100,000 square feet with total estimated redevelopment costs of $80.0 million and one approximately 875,000 square foot in-process development project with a total estimated investment of $1.0 billion.

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.