Community Healthcare Trust (NYSE:CHCT) and BRAEMAR HOTELS & RESORTS (NYSE:BHR) Head to Head Review

Community Healthcare Trust (NYSE:CHCT) and BRAEMAR HOTELS & RESORTS (NYSE:BHR) are both small-cap finance companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, analyst recommendations, institutional ownership, risk, valuation, dividends and profitability.

Insider and Institutional Ownership

87.8% of Community Healthcare Trust shares are held by institutional investors. Comparatively, 64.8% of BRAEMAR HOTELS & RESORTS shares are held by institutional investors. 5.1% of Community Healthcare Trust shares are held by insiders. Comparatively, 1.8% of BRAEMAR HOTELS & RESORTS shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Community Healthcare Trust and BRAEMAR HOTELS & RESORTS”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Community Healthcare Trust	$115.79 million	3.78	-$3.18 million	($0.39)	-39.53
BRAEMAR HOTELS & RESORTS	$728.40 million	0.26	-$1.69 million	($0.77)	-3.58

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

Risk and Volatility

Community Healthcare Trust has a beta of 0.69, meaning that its share price is 31% less volatile than the S&P 500. Comparatively, BRAEMAR HOTELS & RESORTS has a beta of 1.25, meaning that its share price is 25% more volatile than the S&P 500.

Profitability

This table compares Community Healthcare Trust and BRAEMAR HOTELS & RESORTS’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Community Healthcare Trust	-6.25%	-1.59%	-0.75%
BRAEMAR HOTELS & RESORTS	-0.07%	-0.22%	-0.02%

Analyst Ratings

This is a summary of recent recommendations for Community Healthcare Trust and BRAEMAR HOTELS & RESORTS, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Community Healthcare Trust	0	0	2	0	3.00
BRAEMAR HOTELS & RESORTS	0	0	0	0	0.00

Community Healthcare Trust currently has a consensus price target of $18.00, indicating a potential upside of 16.77%. Given Community Healthcare Trust’s stronger consensus rating and higher probable upside, equities analysts plainly believe Community Healthcare Trust is more favorable than BRAEMAR HOTELS & RESORTS.

Dividends

Community Healthcare Trust pays an annual dividend of $1.89 per share and has a dividend yield of 12.3%. BRAEMAR HOTELS & RESORTS pays an annual dividend of $0.20 per share and has a dividend yield of 7.3%. Community Healthcare Trust pays out -484.6% of its earnings in the form of a dividend. BRAEMAR HOTELS & RESORTS pays out -26.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Community Healthcare Trust has raised its dividend for 3 consecutive years. Community Healthcare Trust is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Community Healthcare Trust beats BRAEMAR HOTELS & RESORTS on 10 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 BRAEMAR HOTELS & RESORTS

Braemar Hotels & Resorts is a conservatively capitalized REIT that invests primarily in high RevPAR, full-service luxury hotels and resorts. We are listed on the New York Stock Exchange under the symbol BHR and are externally-advised by Ashford (NYSE American: AINC).