Reviewing Community Healthcare Trust (CHCT) & Its Competitors

Community Healthcare Trust (NYSE: CHCT) is one of 26 public companies in the “Healthcare REITs” industry, but how does it compare to its peers? We will compare Community Healthcare Trust to related companies based on the strength of its earnings, valuation, dividends, institutional ownership, profitability, risk and analyst recommendations.

Risk & Volatility

Community Healthcare Trust has a beta of 1.01, suggesting that its share price is 1% more volatile than the S&P 500. Comparatively, Community Healthcare Trust’s peers have a beta of -2.20, suggesting that their average share price is 320% less volatile than the S&P 500.

Profitability

This table compares Community Healthcare Trust and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Community Healthcare Trust 11.30% 1.81% 1.33%
Community Healthcare Trust Competitors 35.59% 7.60% 3.80%

Institutional and Insider Ownership

60.3% of Community Healthcare Trust shares are owned by institutional investors. Comparatively, 84.3% of shares of all “Healthcare REITs” companies are owned by institutional investors. 5.5% of Community Healthcare Trust shares are owned by insiders. Comparatively, 1.9% of shares of all “Healthcare REITs” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Community Healthcare Trust and its peers gross revenue, earnings per share (EPS) and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Community Healthcare Trust $25.20 million $2.72 million 102.63
Community Healthcare Trust Competitors $862.35 million $222.25 million 73.47

Community Healthcare Trust’s peers have higher revenue and earnings than Community Healthcare Trust. Community Healthcare Trust is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Analyst Ratings

This is a summary of current ratings and target prices for Community Healthcare Trust and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Community Healthcare Trust 0 0 1 0 3.00
Community Healthcare Trust Competitors 133 737 657 12 2.36

Community Healthcare Trust presently has a consensus price target of $26.50, suggesting a potential downside of 4.37%. As a group, “Healthcare REITs” companies have a potential upside of 27.70%. Given Community Healthcare Trust’s peers higher possible upside, analysts clearly believe Community Healthcare Trust has less favorable growth aspects than its peers.

Dividends

Community Healthcare Trust pays an annual dividend of $1.57 per share and has a dividend yield of 5.7%. Community Healthcare Trust pays out 581.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Healthcare REITs” companies pay a dividend yield of 5.1% and pay out 128.4% of their earnings in the form of a dividend.

Summary

Community Healthcare Trust peers beat Community Healthcare Trust on 10 of the 15 factors compared.

Community Healthcare Trust Company Profile

Community Healthcare Trust Incorporated is an integrated healthcare real estate company. The Company owns and acquires, or finances, real estate properties that are leased to hospitals, doctors, healthcare systems or other healthcare service providers in non-urban markets. It has investments in healthcare real estate, including mortgage and other loans. The Company’s medical office buildings are located in areas, such as, Florida, Georgia, Illinois, Kentucky, Ohio and Texas. Its physician clinics are located in Alabama, Florida, Kansas, Pennsylvania and Wisconsin. Its surgical centers and hospitals are located in areas, such as Louisiana, Michigan and Arizona. Its behavioral facilities are located in Indiana and Illinois. Its specialty centers are located in Texas, Colorado and Alabama, among others. As of December 31, 2016, the Company had interests in 57 real estate properties and one mortgage note, located in 22 states, totaling over 1.33 million square feet in the aggregate.

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