Critical Comparison: CareTrust REIT (NASDAQ:CTRE) and AMEN Properties (OTCMKTS:AMEN)

AMEN Properties (OTCMKTS:AMEN) and CareTrust REIT (NASDAQ:CTRE) are both computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their profitability, institutional ownership, dividends, valuation, analyst recommendations, earnings and risk.

Insider and Institutional Ownership

87.8% of CareTrust REIT shares are held by institutional investors. 30.3% of AMEN Properties shares are held by insiders. Comparatively, 0.5% of CareTrust REIT shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Dividends

AMEN Properties pays an annual dividend of $40.00 per share and has a dividend yield of 8.0%. CareTrust REIT pays an annual dividend of $1.16 per share and has a dividend yield of 4.0%. CareTrust REIT pays out 161.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Profitability

This table compares AMEN Properties and CareTrust REIT’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
AMEN Properties	52.71%	39.63%	32.88%
CareTrust REIT	36.88%	5.32%	3.95%

Analyst Recommendations

This is a summary of recent ratings and target prices for AMEN Properties and CareTrust REIT, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AMEN Properties	0	0	0	0	0.00
CareTrust REIT	0	3	3	0	2.50

CareTrust REIT has a consensus price target of $30.67, suggesting a potential upside of 6.48%. Given CareTrust REIT’s stronger consensus rating and higher possible upside, analysts clearly believe CareTrust REIT is more favorable than AMEN Properties.

Risk and Volatility

AMEN Properties has a beta of 0.78, suggesting that its share price is 22% less volatile than the S&P 500. Comparatively, CareTrust REIT has a beta of 1.08, suggesting that its share price is 8% more volatile than the S&P 500.

Earnings and Valuation

This table compares AMEN Properties and CareTrust REIT”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AMEN Properties	$3.68 million	7.22	$2.05 million	N/A	N/A
CareTrust REIT	$217.77 million	22.67	$53.74 million	$0.72	40.00

CareTrust REIT has higher revenue and earnings than AMEN Properties.

Summary

CareTrust REIT beats AMEN Properties on 8 of the 14 factors compared between the two stocks.

About AMEN Properties

AMEN Properties, Inc. owns oil and gas royalty and working interests in various oil and gas properties in the United States. It holds interests in oil gas and gas royalties through its ownership of SFF Royalty, LLC; and 100% interests in SFF Production, LLC. The company was formerly known as Crosswalk.com, Inc. and changed its name to AMEN Properties, Inc. in October 2002. AMEN Properties, Inc. was incorporated in 1993 and is based in Richardson, Texas.

About CareTrust REIT

CareTrust REIT, Inc.’s (CareTrust REIT or the Company) primary business consists of acquiring, financing, developing and owning real property to be leased to third-party tenants in the healthcare sector. As of March 31, 2024, the Company owned directly or through a joint venture and leased to independent operators, 228 skilled nursing facilities (SNFs), multi-service campuses, assisted living facilities (ALFs) and independent living facilities (ILFs) consisting of 24,189 operational beds and units located in 29 states with the highest concentration of properties by rental income located in California and Texas. As of March 31, 2024, the Company also had other real estate related investments consisting of one preferred equity investment, nine real estate secured loans receivable and four mezzanine loans receivable with a carrying value of $233.3 million.