Care Capital Properties (NYSE: CCP) and Healthcare Trust of America (NYSE:HTA) are both mid-cap finance companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, institutional ownership, analyst recommendations, risk, valuation, dividends and profitabiliy.

Institutional and Insider Ownership

87.2% of Care Capital Properties shares are owned by institutional investors. Comparatively, 93.4% of Healthcare Trust of America shares are owned by institutional investors. 2.3% of Care Capital Properties shares are owned by insiders. Comparatively, 1.5% of Healthcare Trust of America 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.

Volatility & Risk

Care Capital Properties has a beta of 0.38, meaning that its share price is 62% less volatile than the S&P 500. Comparatively, Healthcare Trust of America has a beta of 0.32, meaning that its share price is 68% less volatile than the S&P 500.

Profitability

This table compares Care Capital Properties and Healthcare Trust of America’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Care Capital Properties 65.25% 20.38% 8.35%
Healthcare Trust of America 6.07% 1.42% 0.70%

Earnings & Valuation

This table compares Care Capital Properties and Healthcare Trust of America’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Care Capital Properties $335.69 million 6.31 $308.17 million $1.88 13.40
Healthcare Trust of America $504.67 million 11.85 $301.67 million $0.21 141.95

Care Capital Properties has higher revenue, but lower earnings than Healthcare Trust of America. Care Capital Properties is trading at a lower price-to-earnings ratio than Healthcare Trust of America, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent ratings for Care Capital Properties and Healthcare Trust of America, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Care Capital Properties 0 3 1 0 2.25
Healthcare Trust of America 0 0 8 1 3.11

Care Capital Properties presently has a consensus price target of $26.00, suggesting a potential upside of 3.17%. Healthcare Trust of America has a consensus price target of $34.50, suggesting a potential upside of 15.73%. Given Healthcare Trust of America’s stronger consensus rating and higher possible upside, analysts clearly believe Healthcare Trust of America is more favorable than Care Capital Properties.

Dividends

Care Capital Properties pays an annual dividend of $2.28 per share and has a dividend yield of 9.0%. Healthcare Trust of America pays an annual dividend of $1.20 per share and has a dividend yield of 4.0%. 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. Healthcare Trust of America pays out 571.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Care Capital Properties has raised its dividend for 4 consecutive years. Care Capital Properties is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Care Capital Properties beats Healthcare Trust of America on 10 of the 18 factors compared between the two stocks.

About Care Capital Properties

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.

About Healthcare Trust of America

Healthcare Trust of America, Inc. is a real estate investment trust. The Company is an owner and operator of medical office buildings (MOBs) in the United States. The Company focuses on owning and operating MOBs that serve healthcare delivery and are located on health system campuses, near university medical centers, or in community core outpatient locations. As of December 31, 2016, the Company’s portfolio consisted of approximately 17.7 million square feet of gross leasable area. As of December 31, 2016, the Company’s portfolio included MOBs, such as single-tenant and multi-tenant, and other healthcare facilities, such as hospitals and senior care. As of December 31, 2016, the Company’s portfolio had 355 buildings located in 31 states. As of December 31, 2016, the Company’s properties were located in various states of the United States, such as Alabama, Arizona, California, Colorado, Florida, Georgia, Hawaii, Illinois, Indiana, Kansas, Maryland, Michigan, Minnesota, Nevada and Utah.

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