Analyzing LTC Properties (LTC) & Healthcare Trust of America (HTA)
LTC Properties (NYSE: LTC) and Healthcare Trust of America (NYSE:HTA) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, institutional ownership, valuation, dividends, risk and profitability.
Insider and Institutional Ownership
80.6% of LTC Properties shares are owned by institutional investors. Comparatively, 97.9% of Healthcare Trust of America shares are owned by institutional investors. 1.5% of LTC Properties shares are owned by insiders. Comparatively, 1.5% of Healthcare Trust of America shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Earnings and Valuation
This table compares LTC Properties and Healthcare Trust of America’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|LTC Properties||$161.58 million||11.66||$85.11 million||$2.23||21.36|
|Healthcare Trust of America||$460.93 million||13.59||$45.91 million||$0.24||127.42|
LTC Properties has higher revenue, but lower earnings than Healthcare Trust of America. LTC Properties is trading at a lower price-to-earnings ratio than Healthcare Trust of America, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of current recommendations for LTC Properties and Healthcare Trust of America, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Healthcare Trust of America||0||3||7||1||2.82|
LTC Properties currently has a consensus price target of $50.17, suggesting a potential upside of 5.33%. Healthcare Trust of America has a consensus price target of $34.33, suggesting a potential upside of 12.27%. Given Healthcare Trust of America’s stronger consensus rating and higher probable upside, analysts clearly believe Healthcare Trust of America is more favorable than LTC Properties.
Risk and Volatility
LTC Properties has a beta of 0.18, indicating that its stock price is 82% less volatile than the S&P 500. Comparatively, Healthcare Trust of America has a beta of 0.31, indicating that its stock price is 69% less volatile than the S&P 500.
LTC Properties pays an annual dividend of $2.28 per share and has a dividend yield of 4.8%. Healthcare Trust of America pays an annual dividend of $1.22 per share and has a dividend yield of 4.0%. LTC Properties pays out 102.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Healthcare Trust of America pays out 508.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. LTC Properties has increased its dividend for 5 consecutive years and Healthcare Trust of America has increased its dividend for 4 consecutive years. LTC Properties is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This table compares LTC Properties and Healthcare Trust of America’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Healthcare Trust of America||6.75%||1.50%||0.75%|
Healthcare Trust of America beats LTC Properties on 9 of the 17 factors compared between the two stocks.
About LTC Properties
LTC Properties Inc. is a healthcare real estate investment trust (REIT). The Company invests in senior housing and healthcare properties through sale-leaseback transactions, mortgage financing and structured finance solutions, including mezzanine lending. It invests in various properties, including Skilled nursing facilities (SNF), Assisted living facilities (ALF), Independent living facilities (ILF), Memory care facilities (MC) and Range of care facilities (ROC). SNF provides restorative, rehabilitative and nursing care. Many skilled nursing facilities provide ancillary services that include occupational, speech, physical, respiratory and IV therapies, as well as sub-acute care services, which are paid either by the patient, the patient’s family, private health insurance, or through the federal Medicare or state Medicaid programs. ALF serves people requiring assistance with activities of daily living, but do not require the constant supervision skilled nursing facilities provide.
About Healthcare Trust of America
Healthcare Trust of America, Inc. is a real estate investment trust. The Company is an owner and operator of medical office buildings (MOBs) in the United States. The Company focuses on owning and operating MOBs that serve healthcare delivery and are located on health system campuses, near university medical centers, or in community core outpatient locations. As of December 31, 2016, the Company’s portfolio consisted of approximately 17.7 million square feet of gross leasable area. As of December 31, 2016, the Company’s portfolio included MOBs, such as single-tenant and multi-tenant, and other healthcare facilities, such as hospitals and senior care. As of December 31, 2016, the Company’s portfolio had 355 buildings located in 31 states. As of December 31, 2016, the Company’s properties were located in various states of the United States, such as Alabama, Arizona, California, Colorado, Florida, Georgia, Hawaii, Illinois, Indiana, Kansas, Maryland, Michigan, Minnesota, Nevada and Utah.
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