CareTrust REIT (NASDAQ:CTRE) versus Rayonier (NYSE:RYN) Financial Analysis

Rayonier (NYSE:RYN) and CareTrust REIT (NASDAQ:CTRE) are both mid-cap construction 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.

Insider & Institutional Ownership

89.1% of Rayonier shares are owned by institutional investors. Comparatively, 87.8% of CareTrust REIT shares are owned by institutional investors. 0.8% of Rayonier shares are owned by insiders. Comparatively, 1.8% 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.

Valuation and Earnings

This table compares Rayonier 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
Rayonier	$1.06 billion	4.07	$173.49 million	$1.12	25.77
CareTrust REIT	$217.77 million	16.08	$53.74 million	$0.52	47.40

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

Dividends

Rayonier pays an annual dividend of $1.14 per share and has a dividend yield of 4.0%. CareTrust REIT pays an annual dividend of $1.16 per share and has a dividend yield of 4.7%. Rayonier pays out 101.8% 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 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Rayonier	15.92%	3.21%	1.62%
CareTrust REIT	27.47%	5.04%	3.19%

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rayonier	0	2	0	0	2.00
CareTrust REIT	0	3	5	0	2.63

Rayonier currently has a consensus target price of $34.00, indicating a potential upside of 17.81%. CareTrust REIT has a consensus target price of $24.50, indicating a potential downside of 0.61%. Given Rayonier’s higher probable upside, equities research analysts plainly believe Rayonier is more favorable than CareTrust REIT.

Risk and Volatility

Rayonier has a beta of 1.07, meaning that its stock price is 7% more 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.

Summary

CareTrust REIT beats Rayonier on 9 of the 16 factors compared between the two stocks.

About Rayonier

Rayonier is a leading timberland real estate investment trust with assets located in some of the most productive softwood timber growing regions in the United States and New Zealand. As of December 31, 2023, Rayonier owned or leased under long-term agreements approximately 2.7 million acres of timberlands located in the U.S. South (1.85 million acres), U.S. Pacific Northwest (418,000 acres) and New Zealand (421,000 acres).

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.