Head-To-Head Review: SL Green Realty (NYSE:SLG) & Community Healthcare Trust (NYSE:CHCT)

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

Risk & Volatility

Community Healthcare Trust has a beta of 0.67, indicating that its share price is 33% less volatile than the S&P 500. Comparatively, SL Green Realty has a beta of 1.82, indicating that its share price is 82% more volatile than the S&P 500.

Dividends

Community Healthcare Trust pays an annual dividend of $1.86 per share and has a dividend yield of 9.7%. SL Green Realty pays an annual dividend of $3.00 per share and has a dividend yield of 3.9%. Community Healthcare Trust pays out -2,066.7% of its earnings in the form of a dividend. SL Green Realty pays out -120.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Community Healthcare Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Community Healthcare Trust and SL Green Realty, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Community Healthcare Trust	0	2	1	0	2.33
SL Green Realty	2	10	2	0	2.00

Community Healthcare Trust currently has a consensus target price of $21.00, indicating a potential upside of 10.06%. SL Green Realty has a consensus target price of $65.57, indicating a potential downside of 14.82%. Given Community Healthcare Trust’s stronger consensus rating and higher probable upside, research analysts clearly believe Community Healthcare Trust is more favorable than SL Green Realty.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Community Healthcare Trust	-0.39%	-0.09%	-0.05%
SL Green Realty	-16.78%	-3.76%	-1.46%

Institutional and Insider Ownership

87.8% of Community Healthcare Trust shares are owned by institutional investors. Comparatively, 90.0% of SL Green Realty shares are owned by institutional investors. 4.0% of Community Healthcare Trust shares are owned by company insiders. Comparatively, 5.1% of SL Green Realty shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Community Healthcare Trust and SL Green Realty”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Community Healthcare Trust	$115.61 million	4.66	$7.71 million	($0.09)	-212.00
SL Green Realty	$852.12 million	5.96	-$557.30 million	($2.50)	-30.79

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

Summary

Community Healthcare Trust beats SL Green Realty on 9 of the 16 factors compared between the two stocks.

About Community Healthcare Trust

Community Healthcare Trust Incorporated (the Company”, we”, our”) was organized in the State of Maryland on March 28, 2014. The Company is a fully-integrated healthcare real estate company that owns and acquires real estate properties that are leased to hospitals, doctors, healthcare systems or other healthcare service providers. As of March 31, 2024, the Company had investments of approximately $1.1 billion in 197 real estate properties (including a portion of one property accounted for as a sales-type lease with a gross amount totaling approximately $3.0 million and two properties classified as an asset held for sale with an aggregate amount totaling approximately $7.5 million. The properties are located in 35 states, totaling approximately 4.4 million square feet in the aggregate and were approximately 92.3% leased, excluding real estate assets held for sale, at March 31, 2024 with a weighted average remaining lease term of approximately 6.9 years.

About SL Green Realty

3SL Green Realty Corp., Manhattan’s largest office landlord, is a fully integrated real estate investment trust, or REIT, that is focused primarily on acquiring, managing and maximizing value of Manhattan commercial properties. As of June 30, 2022, SL Green held interests in 64 buildings totaling 34.4 million square feet. This included ownership interests in 26.3 million square feet of Manhattan buildings and 7.2 million square feet securing debt and preferred equity investments.