CareTrust REIT (NASDAQ:CTRE – Get Free Report) and Power REIT (NYSE:PW – Get Free Report) are both finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, dividends, valuation, risk, profitability and institutional ownership.
Profitability
This table compares CareTrust REIT and Power REIT’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| CareTrust REIT | 42.22% | 5.59% | 4.39% |
| Power REIT | -752.26% | -215.55% | -39.65% |
Institutional and Insider Ownership
87.8% of CareTrust REIT shares are held by institutional investors. Comparatively, 14.6% of Power REIT shares are held by institutional investors. 0.5% of CareTrust REIT shares are held by company insiders. Comparatively, 26.7% of Power REIT shares are held by company 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.
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| CareTrust REIT | $246.41 million | 25.46 | $125.08 million | $0.92 | 35.57 |
| Power REIT | $3.00 million | 1.51 | -$14.37 million | ($7.29) | -0.18 |
CareTrust REIT has higher revenue and earnings than Power REIT. Power REIT is trading at a lower price-to-earnings ratio than CareTrust REIT, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of recent ratings and target prices for CareTrust REIT and Power REIT, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| CareTrust REIT | 1 | 1 | 4 | 0 | 2.50 |
| Power REIT | 0 | 0 | 0 | 0 | 0.00 |
CareTrust REIT currently has a consensus target price of $31.1667, suggesting a potential downside of 4.75%. Given CareTrust REIT’s stronger consensus rating and higher possible upside, equities research analysts plainly believe CareTrust REIT is more favorable than Power REIT.
Risk and Volatility
CareTrust REIT has a beta of 0.85, meaning that its stock price is 15% less volatile than the S&P 500. Comparatively, Power REIT has a beta of 1.36, meaning that its stock price is 36% more volatile than the S&P 500.
Summary
CareTrust REIT beats Power REIT on 12 of the 14 factors compared between the two stocks.
About CareTrust REIT
CareTrust REIT, Inc.’s (CareTrust REIT or the Company) primary business consists of acquiring, financing, developing and owning real property to be leased to third-party tenants in the healthcare sector. As of March 31, 2024, the Company owned directly or through a joint venture and leased to independent operators, 228 skilled nursing facilities (SNFs), multi-service campuses, assisted living facilities (ALFs) and independent living facilities (ILFs) consisting of 24,189 operational beds and units located in 29 states with the highest concentration of properties by rental income located in California and Texas. As of March 31, 2024, the Company also had other real estate related investments consisting of one preferred equity investment, nine real estate secured loans receivable and four mezzanine loans receivable with a carrying value of $233.3 million.
About Power REIT
Power REIT, with a focus on the Triple Bottom Line and a commitment to Profit, Planet and People is a specialized real estate investment trust (REIT) that owns sustainable real estate related to infrastructure assets including properties for Controlled Environment Agriculture, Renewable Energy and Transportation. Power REIT is actively seeking to expand its real estate portfolio related to Controlled Environment Agriculture in the form of greenhouses for the cultivation of food and cannabis.
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