Reviewing Community Healthcare Trust (NYSE:CHCT) and Equity LifeStyle Properties (NYSE:ELS)

Equity LifeStyle Properties (NYSE:ELSGet Rating) and Community Healthcare Trust (NYSE:CHCTGet Rating) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, dividends, valuation, risk, analyst recommendations, earnings and profitability.

Analyst Ratings

This is a summary of recent ratings for Equity LifeStyle Properties and Community Healthcare Trust, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Equity LifeStyle Properties 0 3 5 0 2.63
Community Healthcare Trust 0 1 0 0 2.00

Equity LifeStyle Properties currently has a consensus target price of $83.29, suggesting a potential upside of 15.85%. Community Healthcare Trust has a consensus target price of $43.00, suggesting a potential upside of 19.68%. Given Community Healthcare Trust’s higher possible upside, analysts plainly believe Community Healthcare Trust is more favorable than Equity LifeStyle Properties.

Dividends

Equity LifeStyle Properties pays an annual dividend of $1.64 per share and has a dividend yield of 2.3%. Community Healthcare Trust pays an annual dividend of $1.76 per share and has a dividend yield of 4.9%. Equity LifeStyle Properties pays out 107.9% 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 204.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Equity LifeStyle Properties has raised its dividend for 19 consecutive years and Community Healthcare Trust has raised its dividend for 7 consecutive years.

Institutional and Insider Ownership

90.9% of Equity LifeStyle Properties shares are owned by institutional investors. Comparatively, 87.3% of Community Healthcare Trust shares are owned by institutional investors. 5.0% of Equity LifeStyle Properties shares are owned by company insiders. Comparatively, 6.3% of Community Healthcare Trust shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Equity LifeStyle Properties 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
Equity LifeStyle Properties $1.27 billion 10.52 $262.48 million $1.52 47.30
Community Healthcare Trust $90.58 million 9.95 $22.49 million $0.86 41.78

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

Profitability

This table compares Equity LifeStyle Properties and Community Healthcare Trust’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Equity LifeStyle Properties 20.97% 19.91% 5.50%
Community Healthcare Trust 24.50% 4.90% 3.02%

Risk and Volatility

Equity LifeStyle Properties has a beta of 0.59, suggesting that its stock price is 41% less volatile than the S&P 500. Comparatively, Community Healthcare Trust has a beta of 0.64, suggesting that its stock price is 36% less volatile than the S&P 500.

Summary

Equity LifeStyle Properties beats Community Healthcare Trust on 12 of the 17 factors compared between the two stocks.

Equity LifeStyle Properties Company Profile (Get Rating)

We are a self-administered, self-managed real estate investment trust (REIT) with headquarters in Chicago. As of January 25, 2021, we own or have an interest in 423 quality properties in 33 states and British Columbia consisting of 161,229 sites.

Community Healthcare Trust Company Profile (Get Rating)

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. The Company had investments of approximately $667.3 million in 131 real estate properties as of September 30, 2020, located in 33 states, totaling approximately 2.8 million square feet.

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