Contrasting LTC Properties (LTC) and The Competition

LTC Properties (NYSE: LTC) is one of 23 publicly-traded companies in the “Healthcare REITs” industry, but how does it weigh in compared to its competitors? We will compare LTC Properties to related businesses based on the strength of its institutional ownership, valuation, earnings, risk, profitability, dividends and analyst recommendations.

Volatility and Risk

LTC Properties has a beta of 0.19, meaning that its stock price is 81% less volatile than the S&P 500. Comparatively, LTC Properties’ competitors have a beta of -2.88, meaning that their average stock price is 388% less volatile than the S&P 500.

Earnings and Valuation

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

Gross Revenue NetIncome Price/Earnings Ratio
LTC Properties $161.58 million $85.11 million 20.93
LTC Properties Competitors $812.10 million $208.81 million 185.69

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

Analyst Recommendations

This is a breakdown of recent ratings and target prices for LTC Properties and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
LTC Properties 1 6 3 0 2.20
LTC Properties Competitors 137 750 671 12 2.36

LTC Properties presently has a consensus price target of $50.17, suggesting a potential upside of 7.95%. As a group, “Healthcare REITs” companies have a potential upside of 6.07%. Given LTC Properties’ higher possible upside, equities research analysts clearly believe LTC Properties is more favorable than its competitors.

Profitability

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

Net Margins Return on Equity Return on Assets
LTC Properties 52.18% 11.69% 6.21%
LTC Properties Competitors 33.99% 7.54% 3.68%

Dividends

LTC Properties pays an annual dividend of $2.28 per share and has a dividend yield of 4.9%. LTC Properties pays out 102.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Healthcare REITs” companies pay a dividend yield of 5.4% and pay out 144.4% of their earnings in the form of a dividend. LTC Properties has increased its dividend for 5 consecutive years.

Institutional and Insider Ownership

79.2% of LTC Properties shares are owned by institutional investors. Comparatively, 82.4% of shares of all “Healthcare REITs” companies are owned by institutional investors. 1.5% of LTC Properties shares are owned by company insiders. Comparatively, 6.2% of shares of all “Healthcare REITs” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

LTC Properties competitors beat LTC Properties on 9 of the 15 factors compared.

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.

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