LTC Properties (LTC) and Blackstone Mortgage Trust (BXMT) Head-To-Head Survey

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

Valuation and Earnings

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This table compares LTC Properties and Blackstone Mortgage Trust’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
LTC Properties $168.07 million 8.29 $87.34 million $3.10 11.34
Blackstone Mortgage Trust $303.05 million 10.94 $217.63 million $2.31 13.27

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

Dividends

LTC Properties pays an annual dividend of $2.28 per share and has a dividend yield of 6.5%. Blackstone Mortgage Trust pays an annual dividend of $2.48 per share and has a dividend yield of 8.1%. LTC Properties pays out 73.5% of its earnings in the form of a dividend. Blackstone Mortgage Trust pays out 107.4% 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 has raised its dividend for 6 consecutive years.

Volatility and Risk

LTC Properties has a beta of 0.11, meaning that its stock price is 89% less volatile than the S&P 500. Comparatively, Blackstone Mortgage Trust has a beta of 0.44, meaning that its stock price is 56% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations for LTC Properties and Blackstone Mortgage Trust, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
LTC Properties 1 5 3 0 2.22
Blackstone Mortgage Trust 0 3 4 0 2.57

LTC Properties currently has a consensus price target of $46.14, suggesting a potential upside of 31.31%. Blackstone Mortgage Trust has a consensus price target of $33.25, suggesting a potential upside of 8.48%. Given LTC Properties’ higher possible upside, equities research analysts clearly believe LTC Properties is more favorable than Blackstone Mortgage Trust.

Institutional & Insider Ownership

80.1% of LTC Properties shares are owned by institutional investors. Comparatively, 61.2% of Blackstone Mortgage Trust shares are owned by institutional investors. 1.5% of LTC Properties shares are owned by insiders. Comparatively, 0.9% of Blackstone Mortgage Trust shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares LTC Properties and Blackstone Mortgage Trust’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
LTC Properties 51.86% 11.52% 6.09%
Blackstone Mortgage Trust 53.86% 8.47% 2.28%

Summary

Blackstone Mortgage Trust beats LTC Properties on 9 of the 17 factors compared between the two stocks.

LTC Properties Company Profile

LTC is a self-administered real estate investment trust that primarily invests in seniors housing and health care properties primarily through sale-leaseback transactions, mortgage financing and structured finance solutions including mezzanine lending. At December 31, 2017, LTC had 202 investments located in 29 states comprising 105 assisted living communities, 96 skilled nursing centers and 1 behavioral health care hospital. Assisted living communities, independent living communities, memory care communities and combinations thereof are included in the assisted living property type. For more information on LTC Properties, Inc., visit the Company's website at www.LTCreit.com, or connect with us on Twitter @LTCreit and LinkedIn.

Blackstone Mortgage Trust Company Profile

Blackstone Mortgage Trust, Inc. is a holding company. The Company conducts its operations as a real estate investment trust for the United States federal income tax purposes. The Company originates and purchases senior loans collateralized by properties in North America and Europe. The Company’s business is focused on originating or acquiring senior, floating rate mortgage loans that are secured by a first priority mortgage on commercial real estate assets primarily in the office, lodging, retail, residential and industrial sectors. These investments may be in the form of whole loans or may also include pari passu participations within mortgage loans. It directly originates, co-originates and acquires debt instruments in conjunction with acquisitions, refinancings and recapitalizations of commercial real estate. The Company’s manager is BXMT Advisors L.L.C.

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