Analyzing Community Healthcare Trust (NYSE:CHCT) & Apartment Investment and Management (NYSE:AIV)

Apartment Investment and Management (NYSE:AIV) and Community Healthcare Trust (NYSE:CHCT) are both small-cap finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their dividends, valuation, profitability, earnings, institutional ownership, analyst recommendations and risk.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Apartment Investment and Management and Community Healthcare Trust, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Apartment Investment and Management	0	1	0	0	2.00
Community Healthcare Trust	0	2	2	0	2.50

Community Healthcare Trust has a consensus target price of $33.67, indicating a potential upside of 27.86%. Given Community Healthcare Trust’s stronger consensus rating and higher possible upside, analysts clearly believe Community Healthcare Trust is more favorable than Apartment Investment and Management.

Dividends

Apartment Investment and Management pays an annual dividend of $1.01 per share and has a dividend yield of 12.5%. Community Healthcare Trust pays an annual dividend of $1.83 per share and has a dividend yield of 7.0%. Apartment Investment and Management pays out -86.3% of its earnings in the form of a dividend. Community Healthcare Trust pays out 871.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Community Healthcare Trust has raised its dividend for 9 consecutive years. Apartment Investment and Management is clearly the better dividend stock, given its higher yield and lower payout ratio.

Insider & Institutional Ownership

83.3% of Apartment Investment and Management shares are owned by institutional investors. Comparatively, 87.8% of Community Healthcare Trust shares are owned by institutional investors. 2.2% of Apartment Investment and Management shares are owned by company insiders. Comparatively, 4.0% of Community Healthcare Trust shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Apartment Investment and Management	-88.87%	-30.04%	-7.60%
Community Healthcare Trust	6.84%	1.52%	0.84%

Volatility & Risk

Apartment Investment and Management has a beta of 1.31, indicating that its share price is 31% more volatile than the S&P 500. Comparatively, Community Healthcare Trust has a beta of 0.65, indicating that its share price is 35% less volatile than the S&P 500.

Valuation & Earnings

This table compares Apartment Investment and Management and Community Healthcare Trust’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Apartment Investment and Management	$187.00 million	6.23	-$166.20 million	($1.17)	-6.88
Community Healthcare Trust	$112.85 million	6.46	$7.71 million	$0.21	125.38

Community Healthcare Trust has lower revenue, but higher earnings than Apartment Investment and Management. Apartment Investment and Management 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.

Summary

Community Healthcare Trust beats Apartment Investment and Management on 13 of the 17 factors compared between the two stocks.

About Apartment Investment and Management

Aimco is a diversified real estate company primarily focused on value add and opportunistic investments, targeting the U.S. multifamily sector. Aimco's mission is to make real estate investments where outcomes are enhanced through our human capital so that substantial value is created for investors, teammates, and the communities in which we operate. Aimco is traded on the New York Stock Exchange as AIV.

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.