Community Healthcare Trust (NYSE:CHCT) and Apartment Investment and Management (NYSE:AIV) Financial Contrast

Community Healthcare Trust (NYSE:CHCT) and Apartment Investment and Management (NYSE:AIV) are both small-cap finance companies, but which is the better business? We will compare the two companies based on the strength of their risk, analyst recommendations, earnings, profitability, institutional ownership, dividends and valuation.

Risk and Volatility

Community Healthcare Trust has a beta of 0.65, meaning that its stock price is 35% less volatile than the S&P 500. Comparatively, Apartment Investment and Management has a beta of 1.31, meaning that its stock price is 31% more volatile than the S&P 500.

Insider & Institutional Ownership

87.8% of Community Healthcare Trust shares are held by institutional investors. Comparatively, 83.3% of Apartment Investment and Management shares are held by institutional investors. 4.0% of Community Healthcare Trust shares are held by company insiders. Comparatively, 2.2% of Apartment Investment and Management shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Community Healthcare Trust and Apartment Investment and Management’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Community Healthcare Trust	6.84%	1.52%	0.84%
Apartment Investment and Management	-88.87%	-30.04%	-7.60%

Dividends

Community Healthcare Trust pays an annual dividend of $1.83 per share and has a dividend yield of 7.3%. Apartment Investment and Management pays an annual dividend of $1.01 per share and has a dividend yield of 12.8%. Community Healthcare Trust pays out 871.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Apartment Investment and Management pays out -86.3% of its earnings in the form of a dividend. Community Healthcare Trust has raised its dividend for 2 consecutive years. Apartment Investment and Management is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Ratings

This is a summary of current ratings and recommmendations for Community Healthcare Trust and Apartment Investment and Management, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Community Healthcare Trust	0	3	1	0	2.25
Apartment Investment and Management	0	1	0	0	2.00

Community Healthcare Trust presently has a consensus price target of $30.33, indicating a potential upside of 21.09%. Given Community Healthcare Trust’s stronger consensus rating and higher possible upside, equities analysts plainly believe Community Healthcare Trust is more favorable than Apartment Investment and Management.

Valuation & Earnings

This table compares Community Healthcare Trust and Apartment Investment and Management’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Community Healthcare Trust	$112.85 million	6.15	$7.71 million	$0.21	119.29
Apartment Investment and Management	$187.00 million	6.13	-$166.20 million	($1.17)	-6.76

Community Healthcare Trust has higher earnings, but lower revenue than Apartment Investment and Management. Apartment Investment and Management is trading at a lower price-to-earnings ratio than Community Healthcare Trust, indicating that it is currently the more affordable of the two stocks.

Summary

Community Healthcare Trust beats Apartment Investment and Management on 13 of the 17 factors compared between the two stocks.

About Community Healthcare Trust

Community Healthcare Trust Incorporated is a real estate investment trust that focuses on owning income-producing real estate properties associated primarily with the delivery of outpatient healthcare services in our target sub-markets throughout the United States. As of December 31, 2023, the Company had investments of approximately $1.1 billion in 193 real estate properties (including a portion of one property accounted for as a sales-type lease and two properties classified as held for sale). The properties are located in 34 states, totaling approximately 4.3 million square feet in the aggregate.

About Apartment Investment and Management

Aimco is a diversified real estate company primarily focused on value add and opportunistic investments, targeting the U.S. multifamily sector. Aimco's mission is to make real estate investments where outcomes are enhanced through our human capital so that substantial value is created for investors, teammates, and the communities in which we operate. Aimco is traded on the New York Stock Exchange as AIV.