Head to Head Review: Claros Mortgage Trust (NYSE:CMTG) vs. CareTrust REIT (NYSE:CTRE)

Claros Mortgage Trust (NYSE:CMTG) and CareTrust REIT (NYSE:CTRE) are both finance companies, but which is the better stock? We will compare the two companies based on the strength of their risk, institutional ownership, profitability, earnings, valuation, analyst recommendations and dividends.

Institutional and Insider Ownership

89.5% of Claros Mortgage Trust shares are owned by institutional investors. Comparatively, 87.8% of CareTrust REIT shares are owned by institutional investors. 1.8% of Claros Mortgage Trust shares are owned by company insiders. Comparatively, 0.5% of CareTrust REIT 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.

Volatility & Risk

Claros Mortgage Trust has a beta of 1.2, suggesting that its share price is 20% more volatile than the S&P 500. Comparatively, CareTrust REIT has a beta of 0.75, suggesting that its share price is 25% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Claros Mortgage Trust	-260.38%	-15.72%	-4.84%
CareTrust REIT	67.28%	8.98%	6.83%

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Claros Mortgage Trust and CareTrust REIT, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Claros Mortgage Trust	3	0	1	0	1.50
CareTrust REIT	0	1	1	3	3.40

Claros Mortgage Trust presently has a consensus target price of $3.17, indicating a potential upside of 33.90%. CareTrust REIT has a consensus target price of $43.00, indicating a potential upside of 7.58%. Given Claros Mortgage Trust’s higher probable upside, equities analysts plainly believe Claros Mortgage Trust is more favorable than CareTrust REIT.

Valuation & Earnings

This table compares Claros Mortgage 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
Claros Mortgage Trust	$187.83 million	1.77	-$221.26 million	($3.49)	-0.68
CareTrust REIT	$369.42 million	24.15	$320.54 million	$1.55	25.79

CareTrust REIT has higher revenue and earnings than Claros Mortgage Trust. Claros Mortgage 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.

Summary

CareTrust REIT beats Claros Mortgage Trust on 10 of the 14 factors compared between the two stocks.

About Claros Mortgage Trust

Claros Mortgage Trust, Inc. operates as a real estate investment trust. It focuses on originating senior and subordinate loans on transitional commercial real estate assets in the United States. The company has elected to be taxed as a real estate investment trust. As a result, it would not be subject to corporate income tax on that portion of its net income that is distributed to shareholders. The company was incorporated in 2015 and is headquartered in New York, New York.

About CareTrust REIT

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.