Analyzing Apartment Investment and Management (NYSE:AIV) & Community Healthcare Trust (NYSE:CHCT)

Community Healthcare Trust (NYSE:CHCT) and Apartment Investment and Management (NYSE:AIV) are both small-cap finance companies, but which is the better business? We will compare the two businesses based on the strength of their profitability, risk, dividends, institutional ownership, analyst recommendations, earnings and valuation.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Community Healthcare Trust and Apartment Investment and Management, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Community Healthcare Trust	0	3	1	0	2.25
Apartment Investment and Management	0	1	0	0	2.00

Community Healthcare Trust currently has a consensus target price of $30.33, indicating a potential upside of 24.50%. Given Community Healthcare Trust’s stronger consensus rating and higher possible upside, equities analysts clearly believe Community Healthcare Trust is more favorable than Apartment Investment and Management.

Insider and Institutional Ownership

87.8% of Community Healthcare Trust shares are owned by institutional investors. Comparatively, 83.3% of Apartment Investment and Management shares are owned by institutional investors. 4.0% of Community Healthcare Trust shares are owned by insiders. Comparatively, 2.2% of Apartment Investment and Management shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Volatility & Risk

Community Healthcare Trust has a beta of 0.64, indicating that its share price is 36% less volatile than the S&P 500. Comparatively, Apartment Investment and Management has a beta of 1.3, indicating that its share price is 30% more volatile than the S&P 500.

Profitability

This table compares Community Healthcare Trust and Apartment Investment and Management’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Community Healthcare Trust	15.91%	3.57%	1.93%
Apartment Investment and Management	-88.87%	-30.04%	-7.60%

Earnings and Valuation

This table compares Community Healthcare Trust and Apartment Investment and Management’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Community Healthcare Trust	$115.00 million	5.87	$7.71 million	$0.64	38.07
Apartment Investment and Management	$186.99 million	6.35	-$166.20 million	($1.17)	-7.01

Community Healthcare Trust has higher earnings, but lower revenue than Apartment Investment and Management. Apartment Investment and Management is trading at a lower price-to-earnings ratio than Community Healthcare Trust, indicating that it is currently the more affordable of the two stocks.

Summary

Community Healthcare Trust beats Apartment Investment and Management on 11 of the 14 factors compared between the two stocks.

About Community Healthcare Trust

Community Healthcare Trust Incorporated is a real estate investment trust that focuses on owning income-producing real estate properties associated primarily with the delivery of outpatient healthcare services in our target sub-markets throughout the United States. As of December 31, 2023, the Company had investments of approximately $1.1 billion in 193 real estate properties (including a portion of one property accounted for as a sales-type lease and two properties classified as held for sale). The properties are located in 34 states, totaling approximately 4.3 million square feet in the aggregate.

About Apartment Investment and Management

Aimco is a diversified real estate company primarily focused on value add and opportunistic investments, targeting the U.S. multifamily sector. Aimco's mission is to make real estate investments where outcomes are enhanced through our human capital so that substantial value is created for investors, teammates, and the communities in which we operate. Aimco is traded on the New York Stock Exchange as AIV.