Compare CareTrust REIT, Inc. (CTRE) vs National Health Investors, Inc. (NHI) Stock

CareTrust REIT, Inc. (CTRE) offers the better valuation at 25.9x trailing P/E (27.1x forward), making it the more compelling value choice. Analysts rate CareTrust REIT, Inc. (CTRE) a "Buy" — based on 19 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, CareTrust REIT, Inc. (CTRE) is the cheapest at 25.9x versus National Health Investors, Inc. at 27.8x. On forward P/E, National Health Investors, Inc. is actually cheaper at 25.5x — notably different from the trailing picture, reflecting expected earnings growth.

Over the past 5 years, CareTrust REIT, Inc. (CTRE) delivered a total return of +103.3%, compared to +48.3% for National Health Investors, Inc. (NHI). A $10,000 investment in CTRE five years ago would be worth approximately $20K today (assuming dividends reinvested). Over 10 years, the gap is even starker: CTRE returned +343.7% versus NHI's +94.4%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), National Health Investors, Inc. (NHI) is the lower-risk stock at 0.16β versus CareTrust REIT, Inc.'s 0.17β — meaning CTRE is approximately 6% more volatile than NHI relative to the S&P 500.

National Health Investors, Inc. (NHI) is the more profitable company, earning 378.0% net margin versus 67.3% for CareTrust REIT, Inc. — meaning it keeps 378.0% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: CTRE leads at 98.7% versus 0.5% for NHI. At the gross margin level — before operating expenses — CTRE leads at 98.9%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

On forward earnings alone, National Health Investors, Inc. (NHI) trades at 25.5x forward P/E versus 27.1x for CareTrust REIT, Inc. — 1.6x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for CTRE: 3.7% to $42.11.

In this comparison, CTRE (3.1% yield) pays a dividend. NHI does not pay a meaningful dividend and should not be held primarily for income.

For long-horizon retirement investors, CareTrust REIT, Inc. (CTRE) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.17), 3.1% yield, +343.7% 10Y return). Both have compounded well over 10 years (CTRE: +343.7%, NHI: +94.4%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Real Estate sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both. In terms of investment character: CTRE is a small-cap income-oriented stock; NHI is a small-cap quality compounder stock. CTRE pays a dividend while NHI does not, making them suitable for different income and tax situations. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.