Head-To-Head Contrast: Smartstop Self Storage REIT (NYSE:SMA) versus LTC Properties (NYSE:LTC)

Smartstop Self Storage REIT (NYSE:SMA) and LTC Properties (NYSE:LTC) are both small-cap finance companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, profitability, analyst recommendations, valuation, earnings, risk and dividends.

Institutional & Insider Ownership

69.3% of LTC Properties shares are owned by institutional investors. 5.5% of Smartstop Self Storage REIT shares are owned by company insiders. Comparatively, 2.2% of LTC Properties shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Smartstop Self Storage REIT	4.38%	1.00%	0.54%
LTC Properties	38.99%	10.87%	6.03%

Valuation and Earnings

This table compares Smartstop Self Storage REIT 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
Smartstop Self Storage REIT	$281.14 million	6.44	-$1.55 million	$0.15	217.95
LTC Properties	$262.85 million	7.47	$117.97 million	$2.47	15.54

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

Analyst Recommendations

This is a summary of current ratings and price targets for Smartstop Self Storage REIT and LTC Properties, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Smartstop Self Storage REIT	1	3	4	2	2.70
LTC Properties	0	4	3	1	2.63

Smartstop Self Storage REIT currently has a consensus price target of $36.81, indicating a potential upside of 12.60%. LTC Properties has a consensus price target of $40.60, indicating a potential upside of 5.81%. Given Smartstop Self Storage REIT’s stronger consensus rating and higher possible upside, analysts clearly believe Smartstop Self Storage REIT is more favorable than LTC Properties.

Risk and Volatility

Smartstop Self Storage REIT has a beta of 0.68, indicating that its share price is 32% less volatile than the S&P 500. Comparatively, LTC Properties has a beta of 0.57, indicating that its share price is 43% less volatile than the S&P 500.

Dividends

Smartstop Self Storage REIT pays an annual dividend of $1.63 per share and has a dividend yield of 5.0%. LTC Properties pays an annual dividend of $2.28 per share and has a dividend yield of 5.9%. Smartstop Self Storage REIT pays out 1,086.7% 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 92.3% 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 is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

LTC Properties beats Smartstop Self Storage REIT on 9 of the 17 factors compared between the two stocks.

About Smartstop Self Storage REIT

Symmetry Medical Inc. (Symmetry) is a medical device solutions company, including surgical instruments, orthopedic implants, and sterilization cases and trays. The Company designs, develops and offers worldwide production and supply chain capabilities for these products to customers in the orthopedic industry, and other medical device markets (including but not limited to arthroscopy, dental, laparoscopy, osteobiologic, and endoscopy segments). It also manufactures specialized non-healthcare products, primarily in the aerospace industry. The Company operates in two segments: original equipment manufacturer (OEM) solutions and symmetry surgical. On August 15, 2011, the Company acquired PSC Industries, Inc’s Olsen Medical division. On December 29, 2011 it acquired the surgical instruments product portfolio from Codman & Shurtleff, Inc., a Johnson & Johnson Company.

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.