Healthcare Trust of America (NYSE: HTA) and LTC Properties (NYSE:LTC) are both finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, risk, profitability, dividends, valuation, analyst recommendations and institutional ownership.

Dividends

Healthcare Trust of America pays an annual dividend of $1.22 per share and has a dividend yield of 4.0%. LTC Properties pays an annual dividend of $2.28 per share and has a dividend yield of 4.8%. 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 pays out 102.7% 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 has increased its dividend for 5 consecutive years and LTC Properties has increased its dividend for 4 consecutive years. LTC Properties is clearly the better dividend stock, given its higher yield and lower payout ratio.

Valuation and Earnings

This table compares Healthcare Trust of America and LTC Properties’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Healthcare Trust of America $460.93 million 13.59 $45.91 million $0.24 127.42
LTC Properties $161.58 million 11.66 $85.11 million $2.22 21.45

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.

Profitability

This table compares Healthcare Trust of America and LTC Properties’ 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%
LTC Properties 52.18% 11.69% 6.21%

Institutional & Insider Ownership

97.9% of Healthcare Trust of America shares are owned by institutional investors. Comparatively, 80.6% of LTC Properties shares are owned by institutional investors. 1.5% of Healthcare Trust of America shares are owned by company insiders. Comparatively, 1.5% of LTC Properties shares are owned by company 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.

Risk and Volatility

Healthcare Trust of America has a beta of 0.31, suggesting that its share price is 69% less volatile than the S&P 500. Comparatively, LTC Properties has a beta of 0.19, suggesting that its share price is 81% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations for Healthcare Trust of America and LTC Properties, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Healthcare Trust of America 0 3 7 1 2.82
LTC Properties 1 6 3 0 2.20

Healthcare Trust of America presently has a consensus price target of $34.33, suggesting a potential upside of 12.27%. LTC Properties has a consensus price target of $50.17, suggesting a potential upside of 5.33%. Given Healthcare Trust of America’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Healthcare Trust of America is more favorable than LTC Properties.

Summary

Healthcare Trust of America beats LTC Properties on 10 of the 17 factors compared between the two stocks.

Healthcare Trust of America Company Profile

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.

LTC Properties Company Profile

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.

Receive News & Stock Ratings for Healthcare Trust of America Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Healthcare Trust of America Inc. and related stocks with our FREE daily email newsletter.