City Office REIT (NYSE:CIO) versus Community Healthcare Trust (NYSE:CHCT) Head to Head Review

Community Healthcare Trust (NYSE:CHCTGet Free Report) and City Office REIT (NYSE:CIOGet Free Report) are both small-cap finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, institutional ownership, valuation, dividends, earnings and profitability.

Earnings and Valuation

This table compares Community Healthcare Trust and City Office REIT’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Community Healthcare Trust $112.85 million 5.73 $7.71 million $0.64 36.47
City Office REIT $179.10 million 1.13 -$2.68 million ($0.28) -17.96

Community Healthcare Trust has higher earnings, but lower revenue than City Office REIT. City Office REIT 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.

Risk and Volatility

Community Healthcare Trust has a beta of 0.68, indicating that its stock price is 32% less volatile than the S&P 500. Comparatively, City Office REIT has a beta of 1.91, indicating that its stock price is 91% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations for Community Healthcare Trust and City Office REIT, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Community Healthcare Trust 0 3 1 0 2.25
City Office REIT 0 1 0 0 2.00

Community Healthcare Trust currently has a consensus price target of $28.67, suggesting a potential upside of 22.82%. Given Community Healthcare Trust’s stronger consensus rating and higher probable upside, analysts clearly believe Community Healthcare Trust is more favorable than City Office REIT.

Institutional & Insider Ownership

87.8% of Community Healthcare Trust shares are held by institutional investors. Comparatively, 67.5% of City Office REIT shares are held by institutional investors. 4.0% of Community Healthcare Trust shares are held by insiders. Comparatively, 3.9% of City Office REIT shares are held 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.

Profitability

This table compares Community Healthcare Trust and City Office REIT’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Community Healthcare Trust 15.91% 3.57% 1.93%
City Office REIT -2.24% -0.60% -0.26%

Dividends

Community Healthcare Trust pays an annual dividend of $1.84 per share and has a dividend yield of 7.9%. City Office REIT pays an annual dividend of $0.40 per share and has a dividend yield of 8.0%. Community Healthcare Trust pays out 287.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. City Office REIT pays out -142.9% of its earnings in the form of a dividend. City Office REIT is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Community Healthcare Trust beats City Office REIT on 12 of the 16 factors compared between the two stocks.

About Community Healthcare Trust

(Get Free Report)

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.

About City Office REIT

(Get Free Report)

City Office REIT is an internally-managed real estate company focused on acquiring, owning and operating high-quality office properties located predominantly in Sun Belt markets. City Office currently owns or has a controlling interest in 5.7 million square feet of office properties. The Company has elected to be taxed as a real estate investment trust for U.S. federal income tax purposes.

Receive News & Ratings for Community Healthcare Trust Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Community Healthcare Trust and related companies with MarketBeat.com's FREE daily email newsletter.