CareTrust REIT (NASDAQ:CTRE – Get Free Report) and Medalist Diversified REIT (NASDAQ:MDRR – Get Free Report) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, profitability, institutional ownership, earnings, dividends, risk and analyst recommendations.
Risk & Volatility
CareTrust REIT has a beta of 1.09, meaning that its stock price is 9% more volatile than the S&P 500. Comparatively, Medalist Diversified REIT has a beta of 0.74, meaning that its stock price is 26% less volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of recent recommendations and price targets for CareTrust REIT and Medalist Diversified REIT, as provided by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
CareTrust REIT | 0 | 3 | 3 | 0 | 2.50 |
Medalist Diversified REIT | 0 | 0 | 0 | 0 | N/A |
Dividends
CareTrust REIT pays an annual dividend of $1.16 per share and has a dividend yield of 4.2%. Medalist Diversified REIT pays an annual dividend of $0.16 per share and has a dividend yield of 1.3%. 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. Medalist Diversified REIT pays out -8.7% of its earnings in the form of a dividend.
Insider and Institutional Ownership
87.8% of CareTrust REIT shares are owned by institutional investors. Comparatively, 17.4% of Medalist Diversified REIT shares are owned by institutional investors. 1.8% of CareTrust REIT shares are owned by company insiders. Comparatively, 16.9% of Medalist Diversified REIT shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Valuation & Earnings
This table compares CareTrust REIT and Medalist Diversified REIT’s top-line revenue, earnings per share (EPS) and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
CareTrust REIT | $213.60 million | 18.51 | $53.74 million | $0.52 | 53.52 |
Medalist Diversified REIT | $10.17 million | 1.35 | -$4.57 million | ($1.84) | -6.66 |
CareTrust REIT has higher revenue and earnings than Medalist Diversified REIT. Medalist Diversified 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.
Profitability
This table compares CareTrust REIT and Medalist Diversified REIT’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
CareTrust REIT | 30.09% | 5.31% | 3.60% |
Medalist Diversified REIT | -19.20% | -21.37% | -4.03% |
Summary
CareTrust REIT beats Medalist Diversified REIT on 13 of the 15 factors compared between the two stocks.
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.
About Medalist Diversified REIT
Medalist Diversified REIT Inc. is a Virginia-based real estate investment trust that specializes in acquiring, owning and managing commercial real estate in the Southeast region of the U.S. The Company's strategy is to focus on commercial real estate which is expected to provide an attractive balance of risk and returns. Medalist utilizes a rigorous, consistent and replicable process for sourcing and conducting due diligence of acquisitions.
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