Camden Property Trust (NYSE:CPT) & Omega Healthcare Investors (NYSE:OHI) Critical Review

Omega Healthcare Investors (NYSE:OHI) and Camden Property Trust (NYSE:CPT) are both large-cap finance companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, earnings, valuation, institutional ownership, risk, analyst recommendations and profitability.

Analyst Ratings

This is a breakdown of recent ratings for Omega Healthcare Investors and Camden Property Trust, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Omega Healthcare Investors	0	6	3	0	2.33
Camden Property Trust	1	10	7	0	2.33

Omega Healthcare Investors presently has a consensus price target of $42.00, suggesting a potential upside of 15.38%. Camden Property Trust has a consensus price target of $129.83, suggesting a potential upside of 10.72%. Given Omega Healthcare Investors’ higher probable upside, equities analysts clearly believe Omega Healthcare Investors is more favorable than Camden Property Trust.

Earnings and Valuation

This table compares Omega Healthcare Investors and Camden Property Trust”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Omega Healthcare Investors	$1.08 billion	9.71	$406.33 million	$1.61	22.61
Camden Property Trust	$1.55 billion	8.08	$163.29 million	$1.09	107.58

Omega Healthcare Investors has higher earnings, but lower revenue than Camden Property Trust. Omega Healthcare Investors is trading at a lower price-to-earnings ratio than Camden Property Trust, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

65.3% of Omega Healthcare Investors shares are held by institutional investors. Comparatively, 97.2% of Camden Property Trust shares are held by institutional investors. 1.4% of Omega Healthcare Investors shares are held by insiders. Comparatively, 1.8% of Camden Property Trust shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Dividends

Omega Healthcare Investors pays an annual dividend of $2.68 per share and has a dividend yield of 7.4%. Camden Property Trust pays an annual dividend of $4.20 per share and has a dividend yield of 3.6%. Omega Healthcare Investors pays out 166.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Camden Property Trust pays out 385.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Camden Property Trust has increased its dividend for 4 consecutive years. Omega Healthcare Investors is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares Omega Healthcare Investors and Camden Property Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Omega Healthcare Investors	38.65%	9.71%	4.35%
Camden Property Trust	10.58%	3.35%	1.82%

Volatility & Risk

Omega Healthcare Investors has a beta of 0.73, suggesting that its share price is 27% less volatile than the S&P 500. Comparatively, Camden Property Trust has a beta of 0.79, suggesting that its share price is 21% less volatile than the S&P 500.

Summary

Omega Healthcare Investors beats Camden Property Trust on 9 of the 16 factors compared between the two stocks.

About Omega Healthcare Investors

Omega Healthcare Investors, Inc. engages in the provision of financing and capital to the long-term healthcare industry with a particular focus on skilled nursing facilities, assisted living facilities, independent living facilities, rehabilitation and acute care facilities, and medical office buildings. The company was founded on March 31, 1992 and is headquartered in Hunt Valley, MD.

About Camden Property Trust

Camden Property Trust, an S&P 500 Company, is a real estate company primarily engaged in the ownership, management, development, redevelopment, acquisition, and construction of multifamily apartment communities. Camden owns and operates 172 properties containing 58,250 apartment homes across the United States. Upon completion of 5 properties currently under development, the Company’s portfolio will increase to 59,996 apartment homes in 177 properties. Camden has been recognized as one of the 100 Best Companies to Work For by FORTUNE magazine for 17 consecutive years, most recently ranking #24.