Community Healthcare Trust (NYSE:CHCT) versus UMH Properties (NYSE:UMH) Head to Head Analysis

Community Healthcare Trust (NYSE:CHCT) and UMH Properties (NYSE:UMH) are both small-cap finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, institutional ownership, analyst recommendations, earnings, profitability, valuation and dividends.

Dividends

Community Healthcare Trust pays an annual dividend of $1.88 per share and has a dividend yield of 11.3%. UMH Properties pays an annual dividend of $0.90 per share and has a dividend yield of 5.4%. Community Healthcare Trust pays out -606.5% of its earnings in the form of a dividend. UMH Properties pays out 750.0% 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 has raised its dividend for 3 consecutive years and UMH Properties has raised its dividend for 4 consecutive years. Community Healthcare Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.

Valuation and Earnings

This table compares Community Healthcare Trust and UMH Properties”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Community Healthcare Trust	$116.53 million	4.06	$7.71 million	($0.31)	-53.81
UMH Properties	$244.10 million	5.78	$8.01 million	$0.12	139.75

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

Analyst Recommendations

This is a summary of current ratings and target prices for Community Healthcare Trust and UMH Properties, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Community Healthcare Trust	0	2	1	0	2.33
UMH Properties	0	1	3	0	2.75

Community Healthcare Trust currently has a consensus target price of $21.00, suggesting a potential upside of 25.90%. UMH Properties has a consensus target price of $21.00, suggesting a potential upside of 25.22%. Given Community Healthcare Trust’s higher probable upside, research analysts plainly believe Community Healthcare Trust is more favorable than UMH Properties.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Community Healthcare Trust	-2.75%	-0.65%	-0.32%
UMH Properties	11.81%	6.06%	1.92%

Risk & Volatility

Community Healthcare Trust has a beta of 0.73, meaning that its share price is 27% less volatile than the S&P 500. Comparatively, UMH Properties has a beta of 1.12, meaning that its share price is 12% more volatile than the S&P 500.

Institutional and Insider Ownership

87.8% of Community Healthcare Trust shares are held by institutional investors. Comparatively, 75.4% of UMH Properties shares are held by institutional investors. 5.1% of Community Healthcare Trust shares are held by company insiders. Comparatively, 8.8% of UMH Properties shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

UMH Properties beats Community Healthcare Trust on 13 of the 17 factors compared between the two stocks.

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.

About UMH Properties

UMH Properties, Inc., which was organized in 1968, is a public equity REIT that owns and operates 135 manufactured home communities containing approximately 25,800 developed homesites. These communities are located in New Jersey, New York, Ohio, Pennsylvania, Tennessee, Indiana, Michigan, Maryland, Alabama, South Carolina and Georgia. UMH also has an ownership interest in and operates two communities in Florida, containing 363 sites, through its joint venture with Nuveen Real Estate