Critical Review: Community Healthcare Trust (NYSE:CHCT) versus Chartwell Retirement Residences (OTCMKTS:CWSRF)

Chartwell Retirement Residences (OTCMKTS:CWSRF) and Community Healthcare Trust (NYSE:CHCT) are both real estate companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, institutional ownership, dividends, analyst recommendations, profitability, risk and earnings.

Dividends

Chartwell Retirement Residences pays an annual dividend of $0.45 per share and has a dividend yield of 4.0%. Community Healthcare Trust pays an annual dividend of $1.86 per share and has a dividend yield of 10.6%. Chartwell Retirement Residences pays out -1,611.6% of its earnings in the form of a dividend. Community Healthcare Trust pays out 290.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Analyst Ratings

This is a summary of recent ratings and target prices for Chartwell Retirement Residences and Community Healthcare Trust, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Chartwell Retirement Residences	0	0	1	0	3.00
Community Healthcare Trust	0	2	1	0	2.33

Chartwell Retirement Residences presently has a consensus target price of $15.00, suggesting a potential upside of 34.29%. Community Healthcare Trust has a consensus target price of $20.75, suggesting a potential upside of 17.76%. Given Chartwell Retirement Residences’ stronger consensus rating and higher possible upside, research analysts clearly believe Chartwell Retirement Residences is more favorable than Community Healthcare Trust.

Profitability

This table compares Chartwell Retirement Residences and Community Healthcare Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Chartwell Retirement Residences	N/A	N/A	N/A
Community Healthcare Trust	1.13%	0.25%	0.13%

Valuation and Earnings

This table compares Chartwell Retirement Residences and Community Healthcare Trust”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Chartwell Retirement Residences	N/A	N/A	N/A	($0.03)	-400.04
Community Healthcare Trust	$114.71 million	4.26	$7.71 million	$0.64	27.53

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

Insider and Institutional Ownership

37.8% of Chartwell Retirement Residences shares are owned by institutional investors. Comparatively, 87.8% of Community Healthcare Trust shares are owned by institutional investors. 4.0% of Community Healthcare Trust shares are owned 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.

Summary

Community Healthcare Trust beats Chartwell Retirement Residences on 9 of the 12 factors compared between the two stocks.

About Chartwell Retirement Residences

Chartwell is in the business of serving and caring for Canada’s seniors, committed to its vision of Making People’s Lives BETTER and to providing a happier, healthier, and more fulfilling life experience for its residents. Chartwell is an unincorporated, open-ended real estate trust which indirectly owns and operates a complete range of seniors housing communities, from independent living through to assisted living and long term care. Chartwell is the largest operator in Canada, serving over 25,000 residents in four provinces across the country.

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.