Care Capital Properties (NYSE: CCP) is one of 26 publicly-traded companies in the “Healthcare REITs” industry, but how does it contrast to its peers? We will compare Care Capital Properties to related companies based on the strength of its profitability, earnings, analyst recommendations, valuation, risk, institutional ownership and dividends.
Risk and Volatility
Care Capital Properties has a beta of 0.38, indicating that its stock price is 62% less volatile than the S&P 500. Comparatively, Care Capital Properties’ peers have a beta of 0.49, indicating that their average stock price is 51% less volatile than the S&P 500.
Care Capital Properties pays an annual dividend of $2.28 per share and has a dividend yield of 9.6%. Care Capital Properties pays out 121.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Healthcare REITs” companies pay a dividend yield of 5.2% and pay out 125.2% of their earnings in the form of a dividend. Care Capital Properties is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.
Institutional and Insider Ownership
88.9% of Care Capital Properties shares are owned by institutional investors. Comparatively, 84.2% of shares of all “Healthcare REITs” companies are owned by institutional investors. 1.7% of Care Capital Properties shares are owned by insiders. Comparatively, 1.9% of shares of all “Healthcare REITs” companies are owned 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.
This table compares Care Capital Properties and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Care Capital Properties||109.47%||40.07%||16.26%|
|Care Capital Properties Competitors||38.21%||8.11%||4.09%|
This is a breakdown of recent recommendations and price targets for Care Capital Properties and its peers, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Care Capital Properties||0||3||0||0||2.00|
|Care Capital Properties Competitors||128||709||642||12||2.36|
Care Capital Properties currently has a consensus target price of $22.50, indicating a potential downside of 5.38%. As a group, “Healthcare REITs” companies have a potential upside of 4.92%. Given Care Capital Properties’ peers stronger consensus rating and higher possible upside, analysts clearly believe Care Capital Properties has less favorable growth aspects than its peers.
Valuation and Earnings
This table compares Care Capital Properties and its peers gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Care Capital Properties||N/A||N/A||12.65|
|Care Capital Properties Competitors||$788.38 million||$482.52 million||39.20|
Care Capital Properties’ peers have higher revenue and earnings than Care Capital Properties. Care Capital Properties is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.
Care Capital Properties peers beat Care Capital Properties on 7 of the 13 factors compared.
Care Capital Properties Company Profile
Care Capital Properties, Inc. is a self-administered, self-managed real estate investment trust with a diversified portfolio of skilled nursing facilities (SNFs) and other healthcare assets operated by private regional and local care providers. The Company leases its properties to unaffiliated tenants under long-term triple-net leases, pursuant to which the tenants are obligated to pay all property-related expenses, including maintenance, utilities, repairs and taxes. It also manages a small portfolio of secured and unsecured loans, made primarily to its SNF operators and other post-acute care providers. As of December 31, 2016, its portfolio consisted of 345 properties operated by 38 private regional and local care providers, spread across 36 states and containing a total of approximately 38,000 beds/units. It conducts all of its operations through its operating partnership, Care Capital Properties, LP, and its subsidiaries.
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