Community Healthcare Trust (NYSE:CHCT) & UDR (NYSE:UDR) Critical Analysis

Community Healthcare Trust (NYSE:CHCT) and UDR (NYSE:UDR) are both finance companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, earnings, valuation, profitability, analyst recommendations and risk.

Risk & Volatility

Community Healthcare Trust has a beta of 0.69, suggesting that its stock price is 31% less volatile than the S&P 500. Comparatively, UDR has a beta of 0.85, suggesting that its stock price is 15% less volatile than the S&P 500.

Earnings & Valuation

This table compares Community Healthcare Trust and UDR”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Community Healthcare Trust	$114.71 million	4.06	$7.71 million	$0.64	26.28
UDR	$1.63 billion	9.35	$444.35 million	$1.38	33.44

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

Dividends

Community Healthcare Trust pays an annual dividend of $1.85 per share and has a dividend yield of 11.0%. UDR pays an annual dividend of $1.70 per share and has a dividend yield of 3.7%. Community Healthcare Trust pays out 289.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. UDR pays out 123.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. UDR has raised its dividend for 14 consecutive years.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Community Healthcare Trust	1.13%	0.25%	0.13%
UDR	8.34%	3.70%	1.28%

Institutional and Insider Ownership

87.8% of Community Healthcare Trust shares are owned by institutional investors. Comparatively, 97.8% of UDR shares are owned by institutional investors. 4.0% of Community Healthcare Trust shares are owned by company insiders. Comparatively, 3.7% of UDR shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Community Healthcare Trust and UDR, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Community Healthcare Trust	0	2	1	0	2.33
UDR	1	9	8	0	2.39

Community Healthcare Trust presently has a consensus target price of $20.75, suggesting a potential upside of 23.37%. UDR has a consensus target price of $44.28, suggesting a potential downside of 4.04%. Given Community Healthcare Trust’s higher possible upside, equities analysts plainly believe Community Healthcare Trust is more favorable than UDR.

Summary

UDR beats Community Healthcare Trust on 14 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 UDR

UDR, Inc. (NYSE: UDR), an S&P 500 company, is a leading multifamily real estate investment trust with a demonstrated performance history of delivering superior and dependable returns by successfully managing, buying, selling, developing and redeveloping attractive real estate communities in targeted U.S. markets. As of December 31, 2023, UDR owned or had an ownership position in 60,336 apartment homes including 359 homes under development. For over 51 years, UDR has delivered long-term value to shareholders, the best standard of service to Residents and the highest quality experience for Associates.