Analyzing CareTrust REIT (NASDAQ:CTRE) & InnSuites Hospitality Trust (NYSE:IHT)

InnSuites Hospitality Trust (NYSE:IHTGet Free Report) and CareTrust REIT (NASDAQ:CTREGet Free Report) are both consumer discretionary companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, dividends, analyst recommendations, profitability, risk, institutional ownership and valuation.

Valuation & Earnings

This table compares InnSuites Hospitality Trust and CareTrust REIT’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
InnSuites Hospitality Trust $7.48 million 1.78 $200,000.00 $0.03 49.35
CareTrust REIT $217.77 million 17.07 $53.74 million $0.52 50.33

CareTrust REIT has higher revenue and earnings than InnSuites Hospitality Trust. InnSuites Hospitality Trust is trading at a lower price-to-earnings ratio than CareTrust REIT, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

InnSuites Hospitality Trust has a beta of 0.06, meaning that its stock price is 94% less volatile than the S&P 500. Comparatively, CareTrust REIT has a beta of 1.06, meaning that its stock price is 6% more volatile than the S&P 500.

Dividends

InnSuites Hospitality Trust pays an annual dividend of $0.02 per share and has a dividend yield of 1.4%. CareTrust REIT pays an annual dividend of $1.16 per share and has a dividend yield of 4.4%. InnSuites Hospitality Trust pays out 66.7% of its earnings in the form of a dividend. CareTrust REIT pays out 223.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. CareTrust REIT has raised its dividend for 2 consecutive years. CareTrust REIT is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for InnSuites Hospitality Trust and CareTrust REIT, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
InnSuites Hospitality Trust 0 0 0 0 N/A
CareTrust REIT 0 3 5 0 2.63

CareTrust REIT has a consensus target price of $24.50, indicating a potential downside of 6.38%. Given CareTrust REIT’s higher probable upside, analysts plainly believe CareTrust REIT is more favorable than InnSuites Hospitality Trust.

Profitability

This table compares InnSuites Hospitality Trust and CareTrust REIT’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
InnSuites Hospitality Trust 2.99% 6.63% 1.38%
CareTrust REIT 27.47% 5.04% 3.19%

Insider & Institutional Ownership

2.5% of InnSuites Hospitality Trust shares are owned by institutional investors. Comparatively, 87.8% of CareTrust REIT shares are owned by institutional investors. 2.0% of InnSuites Hospitality Trust shares are owned by insiders. Comparatively, 0.5% of CareTrust REIT shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

CareTrust REIT beats InnSuites Hospitality Trust on 13 of the 16 factors compared between the two stocks.

About InnSuites Hospitality Trust

(Get Free Report)

InnSuites Hospitality Trust (NYSE American symbol: IHT) first listed on the NYSE in 1971 is headquartered in Phoenix, Arizona is an unincorporated Ohio Business. Trust that owns and manages hotels under the InnSuites Hotels name. IHT qualifies as a Real Estate Investment Trust (REIT) for tax treatment currently taxed as a corporation with the IRS. IHT has paid dividends each year since 1971 currently at $0.2/year. There are approximately 9 million shares of stock outstanding. In addition, there are approximately 3 million RRF Partnership units convertible 1 to 1 into IHT stock. Total shares and units are approximately 12 million.

About CareTrust REIT

(Get Free Report)

CareTrust REIT, Inc. is a self-administered, publicly-traded real estate investment trust engaged in the ownership, acquisition, development and leasing of skilled nursing, seniors housing and other healthcare-related properties. With a nationwide portfolio of long-term net-leased properties, and a growing portfolio of quality operators leasing them, CareTrust REIT is pursuing both external and organic growth opportunities across the United States.

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