Head to Head Survey: CareTrust REIT (NASDAQ:CTRE) versus UMH Properties (NYSE:UMH)

UMH Properties (NYSE:UMH) and CareTrust REIT (NASDAQ:CTRE) are both finance companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, valuation, profitability, institutional ownership, risk, analyst recommendations and earnings.

Profitability

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

Net Margins Return on Equity Return on Assets
UMH Properties -13.64% -21.08% -2.09%
CareTrust REIT 45.10% 8.74% 5.41%

Earnings and Valuation

This table compares UMH Properties and CareTrust REIT’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
UMH Properties $146.59 million 5.99 $27.75 million $0.63 32.89
CareTrust REIT $163.40 million 14.10 $46.36 million $1.36 17.64

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

Risk and Volatility

UMH Properties 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 1.11, meaning that its stock price is 11% more volatile than the S&P 500.

Dividends

UMH Properties pays an annual dividend of $0.76 per share and has a dividend yield of 3.7%. CareTrust REIT pays an annual dividend of $1.06 per share and has a dividend yield of 4.4%. UMH Properties pays out 120.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. CareTrust REIT pays out 77.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. UMH Properties has increased its dividend for 1 consecutive years and CareTrust REIT has increased its dividend for 5 consecutive years. CareTrust REIT is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Recommendations

This is a breakdown of current ratings for UMH Properties and CareTrust REIT, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
UMH Properties 0 0 5 0 3.00
CareTrust REIT 0 1 8 0 2.89

UMH Properties presently has a consensus target price of $20.00, indicating a potential downside of 3.47%. CareTrust REIT has a consensus target price of $23.38, indicating a potential downside of 2.56%. Given CareTrust REIT’s higher probable upside, analysts clearly believe CareTrust REIT is more favorable than UMH Properties.

Insider & Institutional Ownership

57.4% of UMH Properties shares are held by institutional investors. Comparatively, 87.6% of CareTrust REIT shares are held by institutional investors. 10.4% of UMH Properties shares are held by insiders. Comparatively, 1.4% of CareTrust REIT shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

CareTrust REIT beats UMH Properties on 15 of the 17 factors compared between the two stocks.

About UMH Properties

UMH Properties, Inc., which was organized in 1968, is a public equity REIT that owns and operates 124 manufactured home communities containing approximately 23,400 developed homesites. These communities are located in New Jersey, New York, Ohio, Pennsylvania, Tennessee, Indiana, Michigan and Maryland. In addition, the Company owns a portfolio of REIT securities.

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.

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