National Health Investors (NYSE: NHI) and Care Capital Properties (NYSE:CCP) are both mid-cap finance companies, but which is the superior business? We will contrast the two companies based on the strength of their profitability, dividends, analyst recommendations, earnings, risk, valuation and institutional ownership.
Valuation and Earnings
This table compares National Health Investors and Care Capital Properties’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|National Health Investors||$248.50 million||12.98||$151.54 million||$4.00||19.41|
|Care Capital Properties||N/A||N/A||N/A||$2.90||8.35|
Insider and Institutional Ownership
70.5% of National Health Investors shares are held by institutional investors. Comparatively, 88.9% of Care Capital Properties shares are held by institutional investors. 5.2% of National Health Investors shares are held by insiders. Comparatively, 1.7% of Care Capital Properties shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
This table compares National Health Investors and Care Capital Properties’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|National Health Investors||59.70%||12.74%||6.54%|
|Care Capital Properties||109.47%||40.07%||16.26%|
This is a summary of recent recommendations for National Health Investors and Care Capital Properties, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|National Health Investors||1||6||1||0||2.00|
|Care Capital Properties||0||3||0||0||2.00|
National Health Investors currently has a consensus price target of $79.17, suggesting a potential upside of 1.95%. Care Capital Properties has a consensus price target of $22.50, suggesting a potential downside of 7.06%. Given National Health Investors’ higher probable upside, equities research analysts plainly believe National Health Investors is more favorable than Care Capital Properties.
National Health Investors pays an annual dividend of $3.80 per share and has a dividend yield of 4.9%. Care Capital Properties pays an annual dividend of $2.28 per share and has a dividend yield of 9.4%. National Health Investors pays out 95.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Care Capital Properties pays out 78.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. National Health Investors has raised its dividend for 7 consecutive years. Care Capital Properties is clearly the better dividend stock, given its higher yield and lower payout ratio.
National Health Investors Company Profile
National Health Investors, Inc. is a self-managed real estate investment trust (REIT) specializing in sale-leaseback, joint-venture, mortgage and mezzanine financing of need-driven and discretionary senior housing and medical investments. The Company is engaged in the business of owning and financing healthcare properties. Its portfolio consists of lease, mortgage and other note investments in independent living facilities, assisted living facilities, entrance-fee communities, senior living campuses, skilled nursing facilities, specialty hospitals and medical office buildings. Its other investments include marketable securities and a joint venture structured to comply with the provisions of the REIT Investment Diversification Empowerment Act of 2007 (RIDEA) through which it invests in facility operations managed by an independent third party. As of December 31, 2016, it had investments in real estate, mortgage and other notes receivable involving 205 facilities located in 32 states.
Care Capital Properties Company Profile
Care Capital Properties, Inc. is a self-administered, self-managed real estate investment trust with a diversified portfolio of skilled nursing facilities (SNFs) and other healthcare assets operated by private regional and local care providers. The Company leases its properties to unaffiliated tenants under long-term triple-net leases, pursuant to which the tenants are obligated to pay all property-related expenses, including maintenance, utilities, repairs and taxes. It also manages a small portfolio of secured and unsecured loans, made primarily to its SNF operators and other post-acute care providers. As of December 31, 2016, its portfolio consisted of 345 properties operated by 38 private regional and local care providers, spread across 36 states and containing a total of approximately 38,000 beds/units. It conducts all of its operations through its operating partnership, Care Capital Properties, LP, and its subsidiaries.
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