Head to Head Survey: CareTrust REIT (NASDAQ:CTRE) versus Brandywine Realty Trust (NYSE:BDN)

Brandywine Realty Trust (NYSE:BDN) and CareTrust REIT (NASDAQ:CTRE) are both finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their institutional ownership, dividends, analyst recommendations, profitability, risk, valuation and earnings.

Analyst Ratings

This is a breakdown of current ratings and target prices for Brandywine Realty Trust and CareTrust REIT, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Brandywine Realty Trust	0	2	2	0	2.50
CareTrust REIT	0	3	5	0	2.63

Brandywine Realty Trust presently has a consensus price target of $5.63, indicating a potential upside of 25.56%. CareTrust REIT has a consensus price target of $24.50, indicating a potential downside of 2.43%. Given Brandywine Realty Trust’s higher possible upside, equities research analysts plainly believe Brandywine Realty Trust is more favorable than CareTrust REIT.

Institutional and Insider Ownership

87.3% of Brandywine Realty Trust shares are held by institutional investors. Comparatively, 87.8% of CareTrust REIT shares are held by institutional investors. 2.6% of Brandywine Realty Trust shares are held by company insiders. Comparatively, 1.8% of CareTrust REIT shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Brandywine Realty Trust and CareTrust REIT’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Brandywine Realty Trust	-40.61%	-14.62%	-5.42%
CareTrust REIT	27.47%	5.04%	3.19%

Risk and Volatility

Brandywine Realty Trust has a beta of 1.29, indicating that its stock price is 29% more volatile than the S&P 500. Comparatively, CareTrust REIT has a beta of 1.06, indicating that its stock price is 6% more volatile than the S&P 500.

Dividends

Brandywine Realty Trust pays an annual dividend of $0.60 per share and has a dividend yield of 13.4%. CareTrust REIT pays an annual dividend of $1.16 per share and has a dividend yield of 4.6%. Brandywine Realty Trust pays out -49.2% of its earnings in the form of a dividend. CareTrust REIT pays out 223.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Brandywine Realty Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.

Valuation & Earnings

This table compares Brandywine Realty Trust and CareTrust REIT’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Brandywine Realty Trust	$514.65 million	1.50	-$196.79 million	($1.22)	-3.67
CareTrust REIT	$217.77 million	16.38	$53.74 million	$0.52	48.29

CareTrust REIT has lower revenue, but higher earnings than Brandywine Realty Trust. Brandywine Realty Trust is trading at a lower price-to-earnings ratio than CareTrust REIT, indicating that it is currently the more affordable of the two stocks.

Summary

CareTrust REIT beats Brandywine Realty Trust on 10 of the 16 factors compared between the two stocks.

About Brandywine Realty Trust

Brandywine Realty Trust (NYSE: BDN) is one of the largest, publicly traded, full-service, integrated real estate companies in the United States with a core focus in the Philadelphia and Austin markets. Organized as a real estate investment trust (REIT), we own, develop, lease and manage an urban, town center and transit-oriented portfolio comprising 160 properties and 22.6 million square feet as of September 30, 2023 which excludes assets held for sale. Our purpose is to shape, connect and inspire the world around us through our expertise, the relationships we foster, the communities in which we live and work, and the history we build together.

About CareTrust REIT

CareTrust REIT, Inc. is a self-administered, publicly-traded real estate investment trust engaged in the ownership, acquisition, development and leasing of skilled nursing, seniors housing and other healthcare-related properties. With a nationwide portfolio of long-term net-leased properties, and a growing portfolio of quality operators leasing them, CareTrust REIT is pursuing both external and organic growth opportunities across the United States.