Financial Comparison: LTC Properties (LTC) versus The Competition

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

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for LTC Properties and its competitors, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
LTC Properties	0	3	4	1	2.75
LTC Properties Competitors	419	2000	1983	82	2.39

LTC Properties presently has a consensus price target of $47.40, suggesting a potential upside of 2.11%. As a group, “Healthcare REITs” companies have a potential upside of 8.89%. Given LTC Properties’ competitors higher probable upside, analysts plainly believe LTC Properties has less favorable growth aspects than its competitors.

Dividends

LTC Properties pays an annual dividend of $2.28 per share and has a dividend yield of 4.9%. 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 4.1% and pay out 209.6% of their earnings in the form of a dividend. LTC Properties is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.

Insider and Institutional Ownership

69.3% of LTC Properties shares are owned by institutional investors. Comparatively, 60.4% of shares of all “Healthcare REITs” companies are owned by institutional investors. 2.2% of LTC Properties shares are owned by company insiders. Comparatively, 3.1% of shares of all “Healthcare REITs” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares LTC Properties and its competitors gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
LTC Properties	$262.85 million	$117.97 million	17.13
LTC Properties Competitors	$1.27 billion	$1.61 million	49.53

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

Volatility & Risk

LTC Properties has a beta of 0.55, indicating that its stock price is 45% less volatile than the S&P 500. Comparatively, LTC Properties’ competitors have a beta of 0.85, indicating that their average stock price is 15% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
LTC Properties	127.38%	40.82%	23.73%
LTC Properties Competitors	22.56%	5.64%	2.98%

Summary

LTC Properties beats its competitors on 10 of the 15 factors compared.

LTC Properties Company Profile

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.