Aviv REIT (NASDAQ: AVIV) and LTC Properties (NYSE:LTC) are both small-cap healthcare reits companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, risk, institutional ownership, dividends, profitability, valuation and analyst recommendations.

Profitability

This table compares Aviv REIT and LTC Properties’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Aviv REIT 25.04% 6.86% 2.80%
LTC Properties 52.18% 11.69% 6.21%

Dividends

LTC Properties pays an annual dividend of $2.28 per share and has a dividend yield of 4.7%. Aviv REIT does not pay a dividend. 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. LTC Properties has raised its dividend for 5 consecutive years.

Valuation & Earnings

This table compares Aviv REIT and LTC Properties’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Aviv REIT N/A N/A N/A $0.75 48.91
LTC Properties $161.58 million 11.82 $85.11 million $2.23 21.64

LTC Properties has higher revenue and earnings than Aviv REIT. LTC Properties is trading at a lower price-to-earnings ratio than Aviv REIT, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

80.6% of LTC Properties shares are held by institutional investors. 1.5% of LTC Properties shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Aviv REIT and LTC Properties, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Aviv REIT 0 0 0 0 N/A
LTC Properties 1 6 3 0 2.20

LTC Properties has a consensus price target of $50.17, indicating a potential upside of 3.95%. Given LTC Properties’ higher probable upside, analysts clearly believe LTC Properties is more favorable than Aviv REIT.

Summary

LTC Properties beats Aviv REIT on 11 of the 12 factors compared between the two stocks.

Aviv REIT Company Profile

Aviv REIT, Inc. (AVIV) is a real estate investment trust (REIT). The Company is engaged in investments in healthcare properties, consisting primarily of skilled nursing facilities (SNFs), assisted living facilities (ALFs), and other healthcare properties located in the United States. It specializes in the ownership and triple-net leasing of post-acute and long-term care SNFs. Its leases include rent escalation provisions. The Company is the general partner of Aviv Healthcare Properties Limited Partnership. Its portfolio consists of approximately 346 properties, comprising 285 skilled nursing facilities, 35 assisted living facilities, 14 traumatic brain injury facilities, two long-term acute care hospitals, one neuro hospital, two independent living facilities, two medical office buildings, and five land parcels for development, with approximately 29,646 beds in 30 states triple-net leased to 37 operators.

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.

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