Analyzing Community Healthcare Trust (CHCT) and CLIPPER Rlty In/SH 144A (CLPR)

Community Healthcare Trust (NYSE: CHCT) and CLIPPER Rlty In/SH 144A (NYSE:CLPR) are both small-cap finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, dividends, valuation, profitability, risk, analyst recommendations and institutional ownership.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Community Healthcare Trust and CLIPPER Rlty In/SH 144A, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Community Healthcare Trust 0 1 2 0 2.67
CLIPPER Rlty In/SH 144A 0 0 4 0 3.00

Community Healthcare Trust currently has a consensus price target of $27.50, suggesting a potential downside of 6.43%. CLIPPER Rlty In/SH 144A has a consensus price target of $14.63, suggesting a potential upside of 69.08%. Given CLIPPER Rlty In/SH 144A’s stronger consensus rating and higher probable upside, analysts clearly believe CLIPPER Rlty In/SH 144A is more favorable than Community Healthcare Trust.

Dividends

Community Healthcare Trust pays an annual dividend of $1.60 per share and has a dividend yield of 5.4%. CLIPPER Rlty In/SH 144A pays an annual dividend of $0.38 per share and has a dividend yield of 4.4%. Community Healthcare Trust pays out 113.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. CLIPPER Rlty In/SH 144A pays out 100.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Profitability

This table compares Community Healthcare Trust and CLIPPER Rlty In/SH 144A’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Community Healthcare Trust 10.96% 1.73% 1.23%
CLIPPER Rlty In/SH 144A -5.24% -2.97% -0.53%

Valuation & Earnings

This table compares Community Healthcare Trust and CLIPPER Rlty In/SH 144A’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Community Healthcare Trust $37.34 million 14.31 $3.50 million $1.41 20.84
CLIPPER Rlty In/SH 144A $103.95 million 1.48 -$2.35 million $0.38 22.76

Community Healthcare Trust has higher earnings, but lower revenue than CLIPPER Rlty In/SH 144A. Community Healthcare Trust is trading at a lower price-to-earnings ratio than CLIPPER Rlty In/SH 144A, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

92.4% of Community Healthcare Trust shares are held by institutional investors. Comparatively, 56.6% of CLIPPER Rlty In/SH 144A shares are held by institutional investors. 5.0% of Community Healthcare Trust shares are held by insiders. Comparatively, 36.6% of CLIPPER Rlty In/SH 144A shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Volatility and Risk

Community Healthcare Trust has a beta of 0.83, indicating that its stock price is 17% less volatile than the S&P 500. Comparatively, CLIPPER Rlty In/SH 144A has a beta of 0.1, indicating that its stock price is 90% less volatile than the S&P 500.

Summary

Community Healthcare Trust beats CLIPPER Rlty In/SH 144A on 9 of the 16 factors compared between the two stocks.

Community Healthcare Trust Company Profile

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 non-urban markets throughout the United States. The Company had investments of approximately $413.3 million in 89 real estate properties, including one mortgage note, as of March 31, 2018, located in 27 states, totaling approximately 2.0 million square feet. Additional information regarding the Company, including this quarter's operations, can be found at www.chct.reit.

CLIPPER Rlty In/SH 144A Company Profile

Clipper Realty Inc. (NYSE: CLPR) is a self-administered and self-managed real estate company that acquires, owns, manages, operates and repositions multifamily residential and commercial properties in the New York metropolitan area, with a portfolio in Manhattan and Brooklyn. For more information on Clipper Realty Inc., please visit www.clipperrealty.com.

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