Contrasting Sila Realty Trust (NYSE:SILA) and Community Healthcare Trust (NYSE:CHCT)

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

Risk and Volatility

Sila Realty Trust has a beta of 1.01, meaning that its stock price is 1% more volatile than the S&P 500. Comparatively, Community Healthcare Trust has a beta of 0.73, meaning that its stock price is 27% less volatile than the S&P 500.

Dividends

Sila Realty Trust pays an annual dividend of $1.60 per share and has a dividend yield of 5.2%. Community Healthcare Trust pays an annual dividend of $1.92 per share and has a dividend yield of 11.4%. Sila Realty Trust pays out 238.8% 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 pays out 1,745.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Community Healthcare Trust has increased its dividend for 3 consecutive years. Community Healthcare Trust is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider and Institutional Ownership

87.8% of Community Healthcare Trust shares are held by institutional investors. 0.8% of Sila Realty Trust shares are held by company insiders. Comparatively, 5.3% of Community Healthcare Trust shares are held by company 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.

Analyst Ratings

This is a breakdown of current recommendations for Sila Realty Trust and Community Healthcare Trust, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sila Realty Trust	0	5	1	0	2.17
Community Healthcare Trust	0	3	1	0	2.25

Sila Realty Trust currently has a consensus target price of $29.00, indicating a potential downside of 5.10%. Community Healthcare Trust has a consensus target price of $18.00, indicating a potential upside of 6.76%. Given Community Healthcare Trust’s stronger consensus rating and higher probable upside, analysts clearly believe Community Healthcare Trust is more favorable than Sila Realty Trust.

Valuation & Earnings

This table compares Sila Realty Trust 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
Sila Realty Trust	$201.95 million	8.36	$33.12 million	$0.67	45.61
Community Healthcare Trust	$121.19 million	3.97	$5.10 million	$0.11	153.27

Sila Realty Trust has higher revenue and earnings than Community Healthcare Trust. Sila Realty Trust 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.

Profitability

This table compares Sila Realty Trust and Community Healthcare Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sila Realty Trust	18.64%	2.81%	1.81%
Community Healthcare Trust	4.94%	1.41%	0.61%

Summary

Sila Realty Trust beats Community Healthcare Trust on 9 of the 16 factors compared between the two stocks.

About Sila Realty Trust

Sila Realty Trust, Inc., headquartered in Tampa, Florida, is a net lease real estate investment trust with a strategic focus on investing in the large, growing, and resilient healthcare sector. The Company invests in high quality healthcare facilities along the continuum of care, which, we believe, generate predictable, durable, and growing income streams. Our portfolio comprises high quality tenants in geographically diverse facilities, which are positioned to capitalize on the dynamic delivery of healthcare to patients. As of June 30, 2024, the Company owned 137 real estate properties and two undeveloped land parcels located in 64 markets across the U.S.

About Community Healthcare Trust

Community Healthcare Trust Incorporated (the Company”, we”, our”) was organized in the State of Maryland on March 28, 2014. The Company is a fully-integrated healthcare real estate company that owns and acquires real estate properties that are leased to hospitals, doctors, healthcare systems or other healthcare service providers. As of March 31, 2024, the Company had investments of approximately $1.1 billion in 197 real estate properties (including a portion of one property accounted for as a sales-type lease with a gross amount totaling approximately $3.0 million and two properties classified as an asset held for sale with an aggregate amount totaling approximately $7.5 million. The properties are located in 35 states, totaling approximately 4.4 million square feet in the aggregate and were approximately 92.3% leased, excluding real estate assets held for sale, at March 31, 2024 with a weighted average remaining lease term of approximately 6.9 years.