Rayonier (NYSE:RYN) vs. CareTrust REIT (NASDAQ:CTRE) Critical Contrast

CareTrust REIT (NASDAQ:CTRE) and Rayonier (NYSE:RYN) are both mid-cap finance companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, earnings, dividends, risk, analyst recommendations, valuation and institutional ownership.

Volatility & Risk

CareTrust REIT has a beta of 1.06, indicating that its share price is 6% more volatile than the S&P 500. Comparatively, Rayonier has a beta of 1.07, indicating that its share price is 7% more volatile than the S&P 500.

Valuation and Earnings

This table compares CareTrust REIT and Rayonier’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CareTrust REIT	$217.77 million	16.34	$53.74 million	$0.52	48.17
Rayonier	$1.05 billion	4.28	$173.49 million	$1.12	26.85

Rayonier has higher revenue and earnings than CareTrust REIT. Rayonier is trading at a lower price-to-earnings ratio than CareTrust REIT, indicating that it is currently the more affordable of the two stocks.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
CareTrust REIT	27.47%	5.04%	3.19%
Rayonier	15.92%	3.21%	1.62%

Dividends

CareTrust REIT pays an annual dividend of $1.16 per share and has a dividend yield of 4.6%. Rayonier pays an annual dividend of $1.14 per share and has a dividend yield of 3.8%. CareTrust REIT pays out 223.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Rayonier pays out 101.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Analyst Recommendations

This is a breakdown of current ratings and price targets for CareTrust REIT and Rayonier, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CareTrust REIT	0	3	5	0	2.63
Rayonier	0	2	0	0	2.00

CareTrust REIT currently has a consensus price target of $24.50, suggesting a potential downside of 2.20%. Rayonier has a consensus price target of $34.00, suggesting a potential upside of 13.07%. Given Rayonier’s higher probable upside, analysts plainly believe Rayonier is more favorable than CareTrust REIT.

Insider & Institutional Ownership

87.8% of CareTrust REIT shares are owned by institutional investors. Comparatively, 89.1% of Rayonier shares are owned by institutional investors. 1.8% of CareTrust REIT shares are owned by insiders. Comparatively, 0.8% of Rayonier shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

CareTrust REIT beats Rayonier on 9 of the 16 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.

About Rayonier

Rayonier is a leading timberland real estate investment trust with assets located in some of the most productive softwood timber growing regions in the United States and New Zealand. As of December 31, 2023, Rayonier owned or leased under long-term agreements approximately 2.7 million acres of timberlands located in the U.S. South (1.85 million acres), U.S. Pacific Northwest (418,000 acres) and New Zealand (421,000 acres).