LTC Properties (NYSE: LTC) and Welltower (NYSE:HCN) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, dividends, earnings, profitability, valuation, institutional ownership and analyst recommendations.
LTC Properties pays an annual dividend of $2.28 per share and has a dividend yield of 4.9%. Welltower pays an annual dividend of $3.48 per share and has a dividend yield of 5.2%. LTC Properties pays out 100.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Welltower pays out 108.4% 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 7 consecutive years and Welltower has raised its dividend for 5 consecutive years.
This table compares LTC Properties and Welltower’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of current ratings and recommmendations for LTC Properties and Welltower, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
LTC Properties currently has a consensus price target of $50.17, suggesting a potential upside of 7.82%. Welltower has a consensus price target of $72.69, suggesting a potential upside of 8.16%. Given Welltower’s stronger consensus rating and higher possible upside, analysts clearly believe Welltower is more favorable than LTC Properties.
Volatility & Risk
LTC Properties has a beta of 0.16, meaning that its stock price is 84% less volatile than the S&P 500. Comparatively, Welltower has a beta of 0.24, meaning that its stock price is 76% less volatile than the S&P 500.
Institutional & Insider Ownership
81.5% of LTC Properties shares are owned by institutional investors. Comparatively, 86.6% of Welltower shares are owned by institutional investors. 1.5% of LTC Properties shares are owned by insiders. Comparatively, 0.2% of Welltower shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Earnings and Valuation
This table compares LTC Properties and Welltower’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|LTC Properties||$167.79 million||10.97||$147.45 million||$2.28||20.41|
|Welltower||$4.19 billion||5.92||$2.05 billion||$3.21||20.94|
Welltower has higher revenue and earnings than LTC Properties. LTC Properties is trading at a lower price-to-earnings ratio than Welltower, indicating that it is currently the more affordable of the two stocks.
Welltower beats LTC Properties on 10 of the 17 factors compared between the two stocks.
About LTC Properties
LTC Properties Inc. is a healthcare real estate investment trust (REIT). The Company invests in senior housing and healthcare properties through sale-leaseback transactions, mortgage financing and structured finance solutions, including mezzanine lending. It invests in various properties, including Skilled nursing facilities (SNF), Assisted living facilities (ALF), Independent living facilities (ILF), Memory care facilities (MC) and Range of care facilities (ROC). SNF provides restorative, rehabilitative and nursing care. Many skilled nursing facilities provide ancillary services that include occupational, speech, physical, respiratory and IV therapies, as well as sub-acute care services, which are paid either by the patient, the patient’s family, private health insurance, or through the federal Medicare or state Medicaid programs. ALF serves people requiring assistance with activities of daily living, but do not require the constant supervision skilled nursing facilities provide.
Welltower Inc. invests with seniors housing operators, post-acute providers and health systems to fund real estate and infrastructure. The Company invests in seniors housing and healthcare real estate. It operates in three segments: triple-net, seniors housing operating and outpatient medical. Welltower, a real estate investment trust (REIT), owns interests in properties concentrated in markets in the United States, Canada and the United Kingdom, consisting of seniors housing and post-acute communities, and outpatient medical properties. Its triple-net properties include independent living facilities, independent supportive living facilities (Canada), continuing care retirement communities, assisted living facilities, care homes with and without nursing (the United Kingdom), Alzheimer’s/dementia care facilities, long-term/post-acute care facilities and hospitals. Its outpatient medical properties include outpatient medical buildings.
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