Head-To-Head Comparison: Brandywine Realty Trust (NYSE:BDN) & CareTrust REIT (NASDAQ:CTRE)

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

Dividends

CareTrust REIT pays an annual dividend of $1.16 per share and has a dividend yield of 4.6%. Brandywine Realty Trust pays an annual dividend of $0.60 per share and has a dividend yield of 13.4%. 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 pays out -49.2% of its earnings in the form of a dividend. Brandywine Realty Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.

Institutional & Insider Ownership

87.8% of CareTrust REIT shares are held by institutional investors. Comparatively, 87.3% of Brandywine Realty Trust shares are held by institutional investors. 1.8% of CareTrust REIT shares are held by insiders. Comparatively, 2.6% of Brandywine Realty Trust shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CareTrust REIT	$205.94 million	17.31	$53.74 million	$0.52	48.27
Brandywine Realty Trust	$514.65 million	1.50	-$196.79 million	($1.22)	-3.67

CareTrust REIT has higher earnings, but lower revenue 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.

Risk & Volatility

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

Profitability

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

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

Analyst Recommendations

This is a breakdown of recent recommendations for CareTrust REIT and Brandywine Realty Trust, as reported by MarketBeat.

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

CareTrust REIT currently has a consensus target price of $24.50, indicating a potential downside of 2.39%. Brandywine Realty Trust has a consensus target price of $5.63, indicating a potential upside of 25.56%. Given Brandywine Realty Trust’s higher possible upside, analysts plainly believe Brandywine Realty Trust is more favorable than CareTrust REIT.

Summary

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

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.

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.