Contrasting LTC Properties (NYSE:LTC) and National Healthcare Properties (NASDAQ:NHP)

LTC Properties (NYSE:LTCGet Free Report) and National Healthcare Properties (NASDAQ:NHPGet Free Report) are both real estate companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, earnings, valuation, analyst recommendations, profitability, institutional ownership and risk.

Profitability

This table compares LTC Properties and National Healthcare Properties’ 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%
National Healthcare Properties -13.04% -6.22% -2.52%

Analyst Ratings

This is a breakdown of current ratings and price targets for LTC Properties and National Healthcare Properties, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
LTC Properties 0 4 5 0 2.56
National Healthcare Properties 1 5 6 0 2.42

LTC Properties currently has a consensus target price of $43.67, indicating a potential upside of 6.84%. National Healthcare Properties has a consensus target price of $18.00, indicating a potential upside of 10.02%. Given National Healthcare Properties’ higher probable upside, analysts clearly believe National Healthcare Properties is more favorable than LTC Properties.

Institutional & Insider Ownership

69.3% of LTC Properties shares are owned by institutional investors. 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.

Earnings and Valuation

This table compares LTC Properties and National Healthcare Properties”s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
LTC Properties $347.85 million 6.33 $117.97 million $2.71 15.08
National Healthcare Properties $342.28 million 3.48 -$57.62 million ($0.13) -125.85

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

Dividends

LTC Properties pays an annual dividend of $2.28 per share and has a dividend yield of 5.6%. National Healthcare Properties pays an annual dividend of $0.30 per share and has a dividend yield of 1.8%. 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. National Healthcare Properties pays out -230.8% of its earnings in the form of a dividend.

Summary

LTC Properties beats National Healthcare Properties on 12 of the 15 factors compared between the two stocks.

About LTC Properties

(Get Free Report)

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.

About National Healthcare Properties

(Get Free Report)

National Healthcare Properties Inc. is a self-managed real estate investment trust focused on acquiring, owning and investing in a diversified portfolio of healthcare real estate, with an emphasis on providing senior housing. National Healthcare Properties Inc. is based in NEW YORK.

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