Reviewing LTC Properties (LTC) & Its Competitors

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
LTC Properties	38.84%	11.42%	6.45%
LTC Properties Competitors	19.33%	4.54%	2.32%

Risk & Volatility

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

Analyst Ratings

This is a breakdown of current ratings for LTC Properties and its rivals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
LTC Properties	0	3	4	1	2.75
LTC Properties Competitors	422	2004	1983	84	2.38

LTC Properties currently has a consensus target price of $47.40, indicating a potential upside of 5.65%. As a group, “Healthcare REITs” companies have a potential upside of 9.73%. Given LTC Properties’ rivals higher probable upside, analysts plainly believe LTC Properties has less favorable growth aspects than its rivals.

Insider and Institutional Ownership

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

Dividends

LTC Properties pays an annual dividend of $2.28 per share and has a dividend yield of 5.1%. LTC Properties pays out 23.9% of its earnings in the form of a dividend. As a group, “Healthcare REITs” companies pay a dividend yield of 4.1% and pay out 162.7% of their earnings in the form of a dividend. LTC Properties is clearly a better dividend stock than its rivals, given its higher yield and lower payout ratio.

Valuation and Earnings

This table compares LTC Properties and its rivals top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
LTC Properties	$262.85 million	$117.97 million	4.70
LTC Properties Competitors	$1.28 billion	$1.61 million	49.22

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

Summary

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

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.