Franklin Street Properties (NYSE:FSP) vs. CareTrust REIT (NASDAQ:CTRE) Head to Head Survey

Franklin Street Properties (NYSE:FSP) and CareTrust REIT (NASDAQ:CTRE) are both finance companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, valuation, risk, dividends, earnings, analyst recommendations and institutional ownership.

Analyst Recommendations

This is a breakdown of current recommendations for Franklin Street Properties and CareTrust REIT, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Franklin Street Properties	0	0	0	0	N/A
CareTrust REIT	0	2	5	0	2.71

Franklin Street Properties presently has a consensus target price of $2.50, indicating a potential upside of 34.41%. CareTrust REIT has a consensus target price of $23.57, indicating a potential downside of 0.71%. Given Franklin Street Properties’ higher possible upside, equities analysts clearly believe Franklin Street Properties is more favorable than CareTrust REIT.

Institutional and Insider Ownership

61.4% of Franklin Street Properties shares are owned by institutional investors. Comparatively, 87.8% of CareTrust REIT shares are owned by institutional investors. 6.2% of Franklin Street Properties shares are owned by insiders. Comparatively, 1.8% of CareTrust REIT shares are owned 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.

Risk & Volatility

Franklin Street Properties has a beta of 0.82, meaning that its share price is 18% less volatile than the S&P 500. Comparatively, CareTrust REIT has a beta of 1.05, meaning that its share price is 5% more volatile than the S&P 500.

Valuation and Earnings

This table compares Franklin Street Properties and CareTrust REIT’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Franklin Street Properties	$145.71 million	1.32	-$48.11 million	($0.47)	-3.96
CareTrust REIT	$217.77 million	14.72	$53.74 million	$0.49	48.45

CareTrust REIT has higher revenue and earnings than Franklin Street Properties. Franklin Street Properties is trading at a lower price-to-earnings ratio than CareTrust REIT, indicating that it is currently the more affordable of the two stocks.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Franklin Street Properties	-33.02%	-6.52%	-4.07%
CareTrust REIT	24.67%	5.14%	2.98%

Dividends

Franklin Street Properties pays an annual dividend of $0.04 per share and has a dividend yield of 2.2%. CareTrust REIT pays an annual dividend of $1.16 per share and has a dividend yield of 4.9%. Franklin Street Properties pays out -8.5% of its earnings in the form of a dividend. CareTrust REIT pays out 236.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. CareTrust REIT has raised its dividend for 1 consecutive years. CareTrust REIT is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

CareTrust REIT beats Franklin Street Properties on 13 of the 16 factors compared between the two stocks.

About Franklin Street Properties

Franklin Street Properties Corp., based in Wakefield, Massachusetts, is focused on infill and central business district (CBD) office properties in the U.S. Sunbelt and Mountain West, as well as select opportunistic markets. FSP seeks value-oriented investments with an eye towards long-term growth and appreciation, as well as current income. FSP is a Maryland corporation that operates in a manner intended to qualify as a real estate investment trust (REIT) for federal income tax purposes.

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.