Analyzing AMEN Properties (OTCMKTS:AMEN) & CareTrust REIT (NASDAQ:CTRE)

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

Institutional and Insider Ownership

87.8% of CareTrust REIT shares are held by institutional investors. 1.8% of CareTrust REIT shares are held by insiders. Comparatively, 30.3% of AMEN Properties 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.

Analyst Ratings

This is a breakdown of recent ratings and price targets for CareTrust REIT and AMEN Properties, as provided by MarketBeat.com.

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

CareTrust REIT currently has a consensus price target of $30.67, suggesting a potential upside of 6.44%. Given CareTrust REIT’s stronger consensus rating and higher possible upside, equities analysts plainly believe CareTrust REIT is more favorable than AMEN Properties.

Risk & Volatility

CareTrust REIT has a beta of 1.07, suggesting that its stock price is 7% more volatile than the S&P 500. Comparatively, AMEN Properties has a beta of 0.78, suggesting that its stock price is 22% less volatile than the S&P 500.

Profitability

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

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

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CareTrust REIT	$217.77 million	22.68	$53.74 million	$0.72	40.01
AMEN Properties	$3.68 million	7.33	$2.05 million	N/A	N/A

CareTrust REIT has higher revenue and earnings than AMEN Properties.

Dividends

CareTrust REIT pays an annual dividend of $1.16 per share and has a dividend yield of 4.0%. AMEN Properties pays an annual dividend of $40.00 per share and has a dividend yield of 7.9%. 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.

Summary

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

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.

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.