Rayonier (NYSE:RYN) and CareTrust REIT (NASDAQ:CTRE) Head to Head Contrast

Rayonier (NYSE:RYN) and CareTrust REIT (NASDAQ:CTRE) are both mid-cap construction companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, profitability, valuation, risk, earnings and dividends.

Volatility & Risk

Rayonier has a beta of 1.07, suggesting that its share price is 7% more volatile than the S&P 500. Comparatively, CareTrust REIT has a beta of 1.06, suggesting that its share price is 6% more volatile than the S&P 500.

Valuation & Earnings

This table compares Rayonier 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
Rayonier	$1.05 billion	4.14	$173.49 million	$1.12	25.95
CareTrust REIT	$217.77 million	16.38	$53.74 million	$0.52	48.29

Rayonier has higher revenue and earnings than CareTrust REIT. Rayonier 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 Rayonier and CareTrust REIT’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Rayonier	15.92%	3.21%	1.62%
CareTrust REIT	27.47%	5.04%	3.19%

Analyst Ratings

This is a breakdown of recent ratings and price targets for Rayonier and CareTrust REIT, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rayonier	0	2	0	0	2.00
CareTrust REIT	0	3	5	0	2.63

Rayonier presently has a consensus target price of $34.00, indicating a potential upside of 17.00%. CareTrust REIT has a consensus target price of $24.50, indicating a potential downside of 2.43%. Given Rayonier’s higher possible upside, equities analysts clearly believe Rayonier is more favorable than CareTrust REIT.

Dividends

Rayonier pays an annual dividend of $1.14 per share and has a dividend yield of 3.9%. CareTrust REIT pays an annual dividend of $1.16 per share and has a dividend yield of 4.6%. Rayonier pays out 101.8% 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 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.

Institutional and Insider Ownership

89.1% of Rayonier shares are held by institutional investors. Comparatively, 87.8% of CareTrust REIT shares are held by institutional investors. 0.8% of Rayonier 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, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

CareTrust REIT beats Rayonier on 9 of the 16 factors compared between the two stocks.

About Rayonier

Rayonier is a leading timberland real estate investment trust with assets located in some of the most productive softwood timber growing regions in the United States and New Zealand. As of December 31, 2023, Rayonier owned or leased under long-term agreements approximately 2.7 million acres of timberlands located in the U.S. South (1.85 million acres), U.S. Pacific Northwest (418,000 acres) and New Zealand (421,000 acres).

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.