Reviewing CareTrust REIT (NYSE:CTRE) and Diversified Healthcare Trust (NASDAQ:DHCNI)

Diversified Healthcare Trust (NASDAQ:DHCNI) and CareTrust REIT (NYSE:CTRE) are both real estate companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, dividends, valuation, institutional ownership, profitability, risk and analyst recommendations.

Analyst Ratings

This is a summary of recent recommendations and price targets for Diversified Healthcare Trust and CareTrust REIT, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Diversified Healthcare Trust	0	0	0	0	0.00
CareTrust REIT	0	3	9	1	2.85

CareTrust REIT has a consensus target price of $44.82, suggesting a potential upside of 12.33%. Given CareTrust REIT’s stronger consensus rating and higher probable upside, analysts plainly believe CareTrust REIT is more favorable than Diversified Healthcare Trust.

Institutional and Insider Ownership

87.8% of CareTrust REIT shares are held by institutional investors. 0.7% of CareTrust REIT shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Diversified Healthcare Trust	N/A	N/A	N/A
CareTrust REIT	62.19%	8.52%	6.64%

Earnings & Valuation

This table compares Diversified Healthcare Trust and CareTrust REIT”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Diversified Healthcare Trust	N/A	N/A	N/A	N/A	N/A
CareTrust REIT	$476.39 million	19.79	$320.54 million	$1.59	25.09

CareTrust REIT has higher revenue and earnings than Diversified Healthcare Trust.

Summary

CareTrust REIT beats Diversified Healthcare Trust on 10 of the 10 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.