Head-To-Head Review: Omega Healthcare Investors (NYSE:OHI) vs. LTC Properties (NYSE:LTC)

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

Analyst Recommendations

This is a summary of recent recommendations and price targets for Omega Healthcare Investors and LTC Properties, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Omega Healthcare Investors	2	7	7	0	2.31
LTC Properties	0	3	4	1	2.75

Omega Healthcare Investors presently has a consensus price target of $49.93, indicating a potential upside of 3.42%. LTC Properties has a consensus price target of $47.40, indicating a potential upside of 4.10%. Given LTC Properties’ stronger consensus rating and higher possible upside, analysts clearly believe LTC Properties is more favorable than Omega Healthcare Investors.

Dividends

Omega Healthcare Investors pays an annual dividend of $2.72 per share and has a dividend yield of 5.6%. LTC Properties pays an annual dividend of $2.28 per share and has a dividend yield of 5.0%. Omega Healthcare Investors pays out 109.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. LTC Properties pays out 23.9% of its earnings in the form of a dividend.

Profitability

This table compares Omega Healthcare Investors and LTC Properties’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Omega Healthcare Investors	58.11%	13.66%	7.54%
LTC Properties	127.38%	37.19%	22.06%

Valuation and Earnings

This table compares Omega Healthcare Investors and LTC Properties”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Omega Healthcare Investors	$1.31 billion	11.16	$572.03 million	$2.48	19.47
LTC Properties	$393.81 million	6.50	$117.97 million	$9.54	4.77

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

Institutional and Insider Ownership

65.2% of Omega Healthcare Investors shares are held by institutional investors. Comparatively, 69.3% of LTC Properties shares are held by institutional investors. 1.7% of Omega Healthcare Investors shares are held by company insiders. Comparatively, 2.2% of LTC Properties shares 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.

Volatility & Risk

Omega Healthcare Investors has a beta of 0.56, indicating that its share price is 44% less volatile than the S&P 500. Comparatively, LTC Properties has a beta of 0.55, indicating that its share price is 45% less volatile than the S&P 500.

Summary

LTC Properties beats Omega Healthcare Investors on 10 of the 17 factors compared between the two stocks.

About Omega Healthcare Investors

Omega Healthcare Investors, Inc. engages in the provision of financing and capital to the long-term healthcare industry with a particular focus on skilled nursing facilities, assisted living facilities, independent living facilities, rehabilitation and acute care facilities, and medical office buildings. The company was founded on March 31, 1992 and is headquartered in Hunt Valley, MD.

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.