LTC Properties (NYSE:LTC) versus BRAEMAR HOTELS & RESORTS (NYSE:BHR) Critical Survey

BRAEMAR HOTELS & RESORTS (NYSE:BHR) and LTC Properties (NYSE:LTC) are both small-cap finance companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, institutional ownership, analyst recommendations, profitability, valuation, earnings and risk.

Analyst Ratings

This is a breakdown of current ratings for BRAEMAR HOTELS & RESORTS and LTC Properties, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BRAEMAR HOTELS & RESORTS	0	0	0	0	0.00
LTC Properties	0	2	2	1	2.80

LTC Properties has a consensus price target of $38.00, suggesting a potential upside of 10.00%. Given LTC Properties’ stronger consensus rating and higher probable upside, analysts clearly believe LTC Properties is more favorable than BRAEMAR HOTELS & RESORTS.

Profitability

This table compares BRAEMAR HOTELS & RESORTS and LTC Properties’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BRAEMAR HOTELS & RESORTS	-0.91%	-2.60%	-0.31%
LTC Properties	42.16%	8.48%	4.78%

Risk and Volatility

BRAEMAR HOTELS & RESORTS has a beta of 1.11, indicating that its share price is 11% more volatile than the S&P 500. Comparatively, LTC Properties has a beta of 0.66, indicating that its share price is 34% less volatile than the S&P 500.

Insider and Institutional Ownership

64.8% of BRAEMAR HOTELS & RESORTS shares are held by institutional investors. Comparatively, 69.3% of LTC Properties shares are held by institutional investors. 1.8% of BRAEMAR HOTELS & RESORTS shares are held by company insiders. Comparatively, 2.1% of LTC Properties shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Valuation and Earnings

This table compares BRAEMAR HOTELS & RESORTS and LTC Properties”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BRAEMAR HOTELS & RESORTS	$728.40 million	0.24	-$1.69 million	($0.86)	-2.99
LTC Properties	$209.85 million	7.56	$91.04 million	$1.94	17.81

LTC Properties has lower revenue, but higher earnings than BRAEMAR HOTELS & RESORTS. BRAEMAR HOTELS & RESORTS 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

BRAEMAR HOTELS & RESORTS pays an annual dividend of $0.20 per share and has a dividend yield of 7.8%. LTC Properties pays an annual dividend of $2.28 per share and has a dividend yield of 6.6%. BRAEMAR HOTELS & RESORTS pays out -23.3% of its earnings in the form of a dividend. LTC Properties pays out 117.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. BRAEMAR HOTELS & RESORTS is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

LTC Properties beats BRAEMAR HOTELS & RESORTS on 13 of the 17 factors compared between the two stocks.

About BRAEMAR HOTELS & RESORTS

Braemar Hotels & Resorts is a conservatively capitalized REIT that invests primarily in high RevPAR, full-service luxury hotels and resorts. We are listed on the New York Stock Exchange under the symbol BHR and are externally-advised by Ashford (NYSE American: AINC).

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.