Head to Head Analysis: LTC Properties (LTC) & Its Rivals

LTC Properties (NYSE:LTC) is one of 40 public companies in the “Healthcare REITs” industry, but how does it weigh in compared to its rivals? We will compare LTC Properties to related companies based on the strength of its dividends, analyst recommendations, profitability, valuation, risk, institutional ownership and earnings.

Analyst Recommendations

This is a breakdown of current ratings and price targets for LTC Properties and its rivals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
LTC Properties	0	3	5	0	2.62
LTC Properties Competitors	419	1995	1980	79	2.38

LTC Properties presently has a consensus target price of $47.40, indicating a potential upside of 4.57%. As a group, “Healthcare REITs” companies have a potential upside of 12.68%. Given LTC Properties’ rivals higher possible upside, analysts clearly believe LTC Properties has less favorable growth aspects than its rivals.

Earnings & Valuation

This table compares LTC Properties and its rivals top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
LTC Properties	$262.85 million	$117.97 million	16.73
LTC Properties Competitors	$1.27 billion	$1.61 million	50.04

LTC Properties’ rivals have higher revenue, but lower earnings than LTC Properties. LTC Properties is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Dividends

LTC Properties pays an annual dividend of $2.28 per share and has a dividend yield of 5.0%. LTC Properties pays out 84.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Healthcare REITs” companies pay a dividend yield of 4.2% and pay out 216.0% of their earnings in the form of a dividend. LTC Properties is clearly a better dividend stock than its rivals, given its higher yield and lower payout ratio.

Profitability

This table compares LTC Properties and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
LTC Properties	38.84%	11.42%	6.45%
LTC Properties Competitors	17.64%	3.92%	2.09%

Risk and Volatility

LTC Properties has a beta of 0.55, suggesting that its share price is 45% less volatile than the S&P 500. Comparatively, LTC Properties’ rivals have a beta of 0.84, suggesting that their average share price is 16% less volatile than the S&P 500.

Insider & Institutional Ownership

69.3% of LTC Properties shares are held by institutional investors. Comparatively, 62.8% of shares of all “Healthcare REITs” companies are held by institutional investors. 2.2% of LTC Properties shares are held by company insiders. Comparatively, 3.1% of shares of all “Healthcare REITs” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

LTC Properties beats its rivals on 9 of the 15 factors compared.

About LTC Properties

LTC Properties, Inc. is a real estate investment trust, which engages in managing seniors housing and health care properties. It operates through the Texas, Michigan, Florida, Wisconsin, Colorado, and Remaining States geographic segments. The company was founded by Andre C. Dimitriadis on May 12, 1992 and is headquartered in Westlake Village, CA.