Presidio Property Trust (NASDAQ:SQFT – Get Free Report) and CareTrust REIT (NASDAQ:CTRE – Get Free Report) are both industrial products companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, institutional ownership, dividends, valuation, analyst recommendations, profitability and risk.
Insider and Institutional Ownership
9.3% of Presidio Property Trust shares are held by institutional investors. Comparatively, 92.2% of CareTrust REIT shares are held by institutional investors. 10.6% of Presidio Property Trust shares are held by insiders. Comparatively, 1.8% of CareTrust REIT shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Profitability
This table compares Presidio Property Trust and CareTrust REIT’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Presidio Property Trust | 107.48% | -6.80% | -1.79% |
| CareTrust REIT | 24.67% | 5.14% | 2.98% |
Dividends
Presidio Property Trust pays an annual dividend of $0.09 per share and has a dividend yield of 8.3%. CareTrust REIT pays an annual dividend of $1.12 per share and has a dividend yield of 4.9%. Presidio Property Trust pays out 6.3% of its earnings in the form of a dividend. CareTrust REIT pays out 228.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Presidio Property Trust has increased its dividend for 1 consecutive years and CareTrust REIT has increased its dividend for 9 consecutive years. Presidio Property Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.
Analyst Recommendations
This is a breakdown of recent ratings and recommmendations for Presidio Property Trust and CareTrust REIT, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Presidio Property Trust | 0 | 0 | 0 | 0 | N/A |
| CareTrust REIT | 0 | 2 | 5 | 0 | 2.71 |
CareTrust REIT has a consensus target price of $23.57, suggesting a potential upside of 3.34%. Given CareTrust REIT’s higher possible upside, analysts clearly believe CareTrust REIT is more favorable than Presidio Property Trust.
Earnings and Valuation
This table compares Presidio Property Trust and CareTrust REIT’s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Presidio Property Trust | $17.76 million | 0.81 | -$2.13 million | $1.42 | 0.77 |
| CareTrust REIT | $198.60 million | 14.99 | $53.74 million | $0.49 | 46.55 |
CareTrust REIT has higher revenue and earnings than Presidio Property Trust. Presidio Property 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.
Volatility and Risk
Presidio Property Trust has a beta of 1.55, indicating that its share price is 55% more volatile than the S&P 500. Comparatively, CareTrust REIT has a beta of 1.04, indicating that its share price is 4% more volatile than the S&P 500.
Summary
CareTrust REIT beats Presidio Property Trust on 10 of the 16 factors compared between the two stocks.
About Presidio Property Trust
Presidio is an internally managed, diversified REIT with holdings in model home properties which are triple-net leased to homebuilders, office, industrial, and retail properties. Presidio’s model homes are leased to homebuilders located in Arizona, Illinois, Texas, Wisconsin, and Florida. Our office, industrial and retail properties are located primarily in Colorado, with properties also located in Maryland, North Dakota, Texas, and Southern California. While geographical clustering of real estate enables us to reduce our operating costs through economies of scale by servicing several properties with less staff, it makes us susceptible to changing market conditions in these discrete geographic areas, including those that have developed as a result of COVID-19. Presidio owns approximately 6.5% of the outstanding common stock of Conduit Pharmaceuticals Inc., a disease agnostic multi-asset clinical-stage disease-agnostic life science company providing an efficient model for compound development.
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.
Receive News & Ratings for Presidio Property Trust Daily – Enter your email address below to receive a concise daily summary of the latest news and analysts’ ratings for Presidio Property Trust and related companies with MarketBeat.com’s FREE daily email newsletter.
