Community Healthcare Trust (NYSE:CHCT) and Lamar Advertising (NASDAQ:LAMR) are both finance companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, risk, valuation, analyst recommendations, earnings, dividends and profitability.
Risk & Volatility
Community Healthcare Trust has a beta of 0.62, indicating that its stock price is 38% less volatile than the S&P 500. Comparatively, Lamar Advertising has a beta of 1.29, indicating that its stock price is 29% more volatile than the S&P 500.
Institutional & Insider Ownership
90.0% of Community Healthcare Trust shares are owned by institutional investors. Comparatively, 77.4% of Lamar Advertising shares are owned by institutional investors. 5.8% of Community Healthcare Trust shares are owned by insiders. Comparatively, 15.0% of Lamar Advertising shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
This is a summary of current recommendations and price targets for Community Healthcare Trust and Lamar Advertising, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Community Healthcare Trust||0||2||7||0||2.78|
Community Healthcare Trust presently has a consensus target price of $47.78, suggesting a potential downside of 1.51%. Lamar Advertising has a consensus target price of $67.17, suggesting a potential upside of 0.67%. Given Lamar Advertising’s higher probable upside, analysts plainly believe Lamar Advertising is more favorable than Community Healthcare Trust.
Earnings and Valuation
This table compares Community Healthcare Trust and Lamar Advertising’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Community Healthcare Trust||$60.85 million||18.12||$8.38 million||$1.77||27.41|
|Lamar Advertising||$1.75 billion||3.84||$372.11 million||$5.80||11.50|
Lamar Advertising has higher revenue and earnings than Community Healthcare Trust. Lamar Advertising is trading at a lower price-to-earnings ratio than Community Healthcare Trust, indicating that it is currently the more affordable of the two stocks.
Community Healthcare Trust pays an annual dividend of $1.69 per share and has a dividend yield of 3.5%. Lamar Advertising pays an annual dividend of $2.00 per share and has a dividend yield of 3.0%. Community Healthcare Trust pays out 95.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Lamar Advertising pays out 34.5% of its earnings in the form of a dividend. Community Healthcare Trust has raised its dividend for 4 consecutive years and Lamar Advertising has raised its dividend for 1 consecutive years. Community Healthcare Trust is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This table compares Community Healthcare Trust and Lamar Advertising’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Community Healthcare Trust||19.46%||3.83%||2.34%|
Lamar Advertising beats Community Healthcare Trust on 9 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 non-urban markets throughout the United States. The Company had investments of approximately $478.4 million in 105 real estate properties as of March 31, 2019, located in 29 states, totaling approximately 2.3 million square feet.
About Lamar Advertising
Founded in 1902, Lamar Advertising (Nasdaq: LAMR) is one of the largest outdoor advertising companies in North America, with approximately 360,000 displays across the United States and Canada. Lamar offers advertisers a variety of billboard, interstate logo, transit and airport advertising formats, helping both local businesses and national brands reach broad audiences every day. In addition to its more traditional out-of-home inventory, Lamar is proud to offer its customers the largest network of digital billboards in the United States with over 3,100 displays.
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