Head-To-Head Comparison: LTC Properties (NYSE:LTC) & Claros Mortgage Trust (NYSE:CMTG)

Claros Mortgage Trust (NYSE:CMTG) and LTC Properties (NYSE:LTC) are both small-cap finance companies, but which is the better business? We will compare the two companies based on the strength of their profitability, institutional ownership, valuation, risk, analyst recommendations, earnings and dividends.

Insider & Institutional Ownership

89.5% of Claros Mortgage Trust shares are held by institutional investors. Comparatively, 69.3% of LTC Properties shares are held by institutional investors. 1.8% of Claros Mortgage Trust 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, endowments and hedge funds believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Claros Mortgage Trust and LTC Properties”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Claros Mortgage Trust	$248.41 million	1.73	-$221.26 million	($2.65)	-1.16
LTC Properties	$231.14 million	7.11	$91.04 million	$0.72	47.94

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

Analyst Recommendations

This is a breakdown of recent recommendations for Claros Mortgage Trust and LTC Properties, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Claros Mortgage Trust	3	0	1	0	1.50
LTC Properties	0	5	1	2	2.63

Claros Mortgage Trust presently has a consensus target price of $3.33, suggesting a potential upside of 8.75%. LTC Properties has a consensus target price of $39.00, suggesting a potential upside of 12.99%. Given LTC Properties’ stronger consensus rating and higher possible upside, analysts plainly believe LTC Properties is more favorable than Claros Mortgage Trust.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Claros Mortgage Trust	-184.07%	-7.99%	-2.39%
LTC Properties	14.58%	3.22%	1.82%

Risk & Volatility

Claros Mortgage Trust has a beta of 1.19, meaning that its share price is 19% more volatile than the S&P 500. Comparatively, LTC Properties has a beta of 0.62, meaning that its share price is 38% less volatile than the S&P 500.

Summary

LTC Properties beats Claros Mortgage Trust on 11 of the 14 factors compared between the two stocks.

About Claros Mortgage Trust

Claros Mortgage Trust, Inc. operates as a real estate investment trust. It focuses on originating senior and subordinate loans on transitional commercial real estate assets in the United States. The company has elected to be taxed as a real estate investment trust. As a result, it would not be subject to corporate income tax on that portion of its net income that is distributed to shareholders. The company was incorporated in 2015 and is headquartered in New York, New York.

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.