Critical Analysis: Healthcare Trust (NASDAQ:HTIBP) & LTC Properties (NYSE:LTC)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Healthcare Trust	N/A	N/A	N/A
LTC Properties	40.76%	9.25%	4.43%

Earnings & Valuation

This table compares Healthcare Trust and LTC Properties’ top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Healthcare Trust	$341.83 million	N/A	N/A	N/A	N/A
LTC Properties	$175.15 million	7.47	$100.02 million	$1.93	16.37

LTC Properties has lower revenue, but higher earnings than Healthcare Trust.

Dividends

Healthcare Trust pays an annual dividend of $1.78 per share and has a dividend yield of 12.4%. LTC Properties pays an annual dividend of $2.28 per share and has a dividend yield of 7.2%. LTC Properties pays out 118.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Analyst Ratings

This is a summary of current recommendations and price targets for Healthcare Trust and LTC Properties, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Healthcare Trust	0	0	0	0	N/A
LTC Properties	1	4	2	0	2.14

LTC Properties has a consensus target price of $34.78, suggesting a potential upside of 10.06%. Given LTC Properties’ higher probable upside, analysts clearly believe LTC Properties is more favorable than Healthcare Trust.

Insider & Institutional Ownership

70.3% of LTC Properties shares are held by institutional investors. 2.0% of LTC Properties shares 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.

Summary

LTC Properties beats Healthcare Trust on 7 of the 10 factors compared between the two stocks.

About Healthcare Trust

Healthcare Trust, Inc. is a publicly registered real estate investment trust focused on acquiring a diversified portfolio of healthcare real estate, with an emphasis on seniors housing and medical office buildings, located in the United States.

About LTC Properties

LTC is a real estate investment trust (REIT) investing in seniors housing and health care properties primarily through sale-leasebacks, mortgage financing, joint-ventures and structured finance solutions including preferred equity and mezzanine lending. LTC's investment portfolio includes 208 properties in 27 states with 29 operating partners. Based on its gross real estate investments, LTC's investment portfolio is comprised of approximately 50% seniors housing and 50% skilled nursing properties.