Critical Survey: Omega Healthcare Investors (NYSE:OHI) & LTC Properties (NYSE:LTC)

Omega Healthcare Investors (NYSE:OHI) and LTC Properties (NYSE:LTC) are both real estate companies, but which is the better investment? We will compare the two companies based on the strength of their risk, institutional ownership, profitability, earnings, valuation, analyst recommendations and dividends.

Dividends

Omega Healthcare Investors pays an annual dividend of $2.72 per share and has a dividend yield of 5.8%. LTC Properties pays an annual dividend of $2.28 per share and has a dividend yield of 5.1%. Omega Healthcare Investors pays out 97.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. 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.

Earnings & Valuation

This table compares Omega Healthcare Investors 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
Omega Healthcare Investors	$1.19 billion	11.96	$572.03 million	$2.80	16.77
LTC Properties	$262.85 million	9.18	$117.97 million	$2.71	16.51

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

Analyst Recommendations

This is a summary of current recommendations and price targets for Omega Healthcare Investors and LTC Properties, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Omega Healthcare Investors	2	7	7	0	2.31
LTC Properties	0	3	5	0	2.62

Omega Healthcare Investors currently has a consensus price target of $49.93, suggesting a potential upside of 6.32%. LTC Properties has a consensus price target of $47.40, suggesting a potential upside of 5.95%. Given Omega Healthcare Investors’ higher possible upside, equities analysts clearly believe Omega Healthcare Investors is more favorable than LTC Properties.

Risk & Volatility

Omega Healthcare Investors has a beta of 0.53, indicating that its stock price is 47% less volatile than the S&P 500. Comparatively, LTC Properties has a beta of 0.55, indicating that its stock price is 45% less volatile than the S&P 500.

Profitability

This table compares Omega Healthcare Investors and LTC Properties’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Omega Healthcare Investors	66.96%	15.76%	8.40%
LTC Properties	38.84%	11.42%	6.45%

Institutional and Insider Ownership

65.2% of Omega Healthcare Investors shares are owned by institutional investors. Comparatively, 69.3% of LTC Properties shares are owned by institutional investors. 1.7% of Omega Healthcare Investors shares are owned by insiders. Comparatively, 2.2% of LTC Properties shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Omega Healthcare Investors beats LTC Properties on 11 of the 16 factors compared between the two stocks.

About Omega Healthcare Investors

Omega Healthcare Investors, Inc. engages in the provision of financing and capital to the long-term healthcare industry with a particular focus on skilled nursing facilities, assisted living facilities, independent living facilities, rehabilitation and acute care facilities, and medical office buildings. The company was founded on March 31, 1992 and is headquartered in Hunt Valley, MD.

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.