Comparing LTC Properties (NYSE:LTC) and Medical Properties Trust (NYSE:MPT)

LTC Properties (NYSE:LTC) and Medical Properties Trust (NYSE:MPT) are both mid-cap real estate companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, dividends, profitability, valuation, institutional ownership, earnings and analyst recommendations.

Profitability

This table compares LTC Properties and Medical Properties Trust’s 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%
Medical Properties Trust	-2.96%	-0.66%	-0.20%

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
LTC Properties	$262.85 million	8.71	$117.97 million	$2.71	15.67
Medical Properties Trust	$972.02 million	2.26	-$277.05 million	($0.06)	-61.33

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

This is a summary of recent ratings and recommmendations for LTC Properties and Medical Properties Trust, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
LTC Properties	0	4	6	0	2.60
Medical Properties Trust	2	1	0	0	1.33

LTC Properties presently has a consensus price target of $44.43, indicating a potential upside of 4.63%. Medical Properties Trust has a consensus price target of $4.15, indicating a potential upside of 12.77%. Given Medical Properties Trust’s higher probable upside, analysts plainly believe Medical Properties Trust is more favorable than LTC Properties.

Volatility & Risk

LTC Properties has a beta of 0.58, suggesting that its share price is 42% less volatile than the S&P 500. Comparatively, Medical Properties Trust has a beta of 1.4, suggesting that its share price is 40% more volatile than the S&P 500.

Dividends

LTC Properties pays an annual dividend of $2.28 per share and has a dividend yield of 5.4%. Medical Properties Trust pays an annual dividend of $0.36 per share and has a dividend yield of 9.8%. 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. Medical Properties Trust pays out -600.0% of its earnings in the form of a dividend. Medical Properties Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.

Institutional and Insider Ownership

69.3% of LTC Properties shares are held by institutional investors. Comparatively, 71.8% of Medical Properties Trust shares are held by institutional investors. 2.2% of LTC Properties shares are held by company insiders. Comparatively, 1.8% of Medical Properties Trust shares are held by company 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 Medical Properties Trust on 10 of the 16 factors compared between the two stocks.

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.

About Medical Properties Trust

Medical Properties Trust, Inc. is a self-advised real estate investment trust formed to capitalize on the changing trends in healthcare delivery by acquiring and developing net-leased healthcare facilities. MPT’s financing model allows hospitals and other healthcare facilities to unlock the value of their underlying real estate in order to fund facility improvements, technology upgrades, staff additions and new construction. Facilities include acute care hospitals, inpatient rehabilitation hospitals, long-term acute care hospitals, and other medical and surgical facilities.