Net Lease Office Properties (NYSE:NLOP – Get Free Report) and LTC Properties (NYSE:LTC – Get Free Report) are both small-cap finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, profitability, earnings, risk, analyst recommendations, institutional ownership and dividends.
Profitability
This table compares Net Lease Office Properties and LTC Properties’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Net Lease Office Properties | -156.16% | -34.31% | -26.04% |
| LTC Properties | 14.58% | 3.22% | 1.82% |
Valuation and Earnings
This table compares Net Lease Office Properties and LTC Properties”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Net Lease Office Properties | $142.25 million | 2.00 | -$91.47 million | ($12.22) | -1.57 |
| LTC Properties | $209.85 million | 8.20 | $91.04 million | $0.72 | 50.17 |
LTC Properties has higher revenue and earnings than Net Lease Office Properties. Net Lease Office Properties is trading at a lower price-to-earnings ratio than LTC Properties, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Net Lease Office Properties has a beta of 0.8, meaning that its share price is 20% less volatile than the S&P 500. Comparatively, LTC Properties has a beta of 0.62, meaning that its share price is 38% less volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of current ratings and price targets for Net Lease Office Properties and LTC Properties, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Net Lease Office Properties | 1 | 0 | 1 | 0 | 2.00 |
| LTC Properties | 0 | 5 | 1 | 1 | 2.43 |
Net Lease Office Properties currently has a consensus price target of $46.00, indicating a potential upside of 139.43%. LTC Properties has a consensus price target of $38.60, indicating a potential upside of 6.85%. Given Net Lease Office Properties’ higher possible upside, equities research analysts plainly believe Net Lease Office Properties is more favorable than LTC Properties.
Institutional and Insider Ownership
58.3% of Net Lease Office Properties shares are owned by institutional investors. Comparatively, 69.3% of LTC Properties shares are owned by institutional investors. 0.7% of Net Lease Office Properties shares are owned by insiders. Comparatively, 2.1% of LTC Properties shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Summary
LTC Properties beats Net Lease Office Properties on 12 of the 14 factors compared between the two stocks.
About Net Lease Office Properties
Net Lease Office Properties (NYSE: NLOP) is a publicly traded real estate investment trust with a portfolio of 59 high-quality office properties, totaling approximately 8.7 million leasable square feet primarily leased to corporate tenants on a single-tenant net lease basis. The vast majority of the office properties owned by NLOP are located in the U.S., with the balance in Europe. The portfolio consists of 62 corporate tenants operating in a variety of industries, generating annualized based rent (ABR) of approximately $145 million. NLOP's business plan is to focus on realizing value for its shareholders primarily through strategic asset management and disposition of its property portfolio over time. Given WPC's extensive knowledge of the portfolio, NLOP is externally managed and advised by wholly owned affiliates of WPC to successfully execute on its business strategy. Over the course of its 50-year history, WPC has developed significant expertise in the single-tenant office real estate sector, including the operation, leasing, acquisition and development of assets through many market cycles, and has a proven track record of execution.
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.
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