Equity Commonwealth (NYSE:EQC – Get Rating) and Community Healthcare Trust (NYSE:CHCT – Get Rating) are both finance companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, institutional ownership, valuation, earnings, dividends, analyst recommendations and risk.
Analyst Ratings
This is a summary of current recommendations and price targets for Equity Commonwealth and Community Healthcare Trust, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Equity Commonwealth | 0 | 0 | 0 | 0 | N/A |
| Community Healthcare Trust | 0 | 1 | 5 | 0 | 2.83 |
Community Healthcare Trust has a consensus price target of $43.43, suggesting a potential upside of 19.60%. Given Community Healthcare Trust’s higher probable upside, analysts clearly believe Community Healthcare Trust is more favorable than Equity Commonwealth.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| Equity Commonwealth | 59.02% | 1.34% | 1.26% |
| Community Healthcare Trust | 22.54% | 4.59% | 2.72% |
Risk & Volatility
Equity Commonwealth has a beta of 0.3, indicating that its share price is 70% less volatile than the S&P 500. Comparatively, Community Healthcare Trust has a beta of 0.74, indicating that its share price is 26% less volatile than the S&P 500.
Valuation & Earnings
This table compares Equity Commonwealth 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 | |
| Equity Commonwealth | $63.14 million | 36.46 | $37.26 million | $0.26 | 80.81 |
| Community Healthcare Trust | $97.68 million | 9.69 | $22.02 million | $0.82 | 44.28 |
Equity Commonwealth has higher earnings, but lower revenue than Community Healthcare Trust. Community Healthcare Trust is trading at a lower price-to-earnings ratio than Equity Commonwealth, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
93.4% of Equity Commonwealth shares are held by institutional investors. Comparatively, 87.7% of Community Healthcare Trust shares are held by institutional investors. 2.7% of Equity Commonwealth shares are held by company insiders. Comparatively, 7.2% of Community Healthcare Trust shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Summary
Community Healthcare Trust beats Equity Commonwealth on 8 of the 13 factors compared between the two stocks.
About Equity Commonwealth
Equity Commonwealth operates as an internally managed and self-advised real estate investment trust. It engages in the ownership and operation of office properties. The company was founded by Barry M. Portnoy on October 9, 1986 and is headquartered in Chicago, IL.
About Community Healthcare Trust
Community Healthcare Trust, Inc. engages in the acquisition of real estate properties that are leased to hospitals, doctors, healthcare systems, and other healthcare services providers. It invests in healthcare properties including outpatient treatment and diagnostic facilities, urgent care centers, acute care hospitals, ambulatory surgery centers, assisted living and long-term care facilities, medical office buildings, clinics, specialty hospitals and treatment centers. The company was founded by Timothy G. Wallace on March 28, 2014 and is headquartered in Franklin, TN.
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