Contrasting LTC Properties (NYSE:LTC) and Omega Healthcare Investors (NYSE:OHI)

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

Profitability

This table compares LTC Properties and Omega Healthcare Investors’ 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%
Omega Healthcare Investors	66.96%	15.76%	8.40%

Analyst Recommendations

This is a breakdown of current recommendations and price targets for LTC Properties and Omega Healthcare Investors, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
LTC Properties	0	3	5	0	2.62
Omega Healthcare Investors	2	7	7	0	2.31

LTC Properties currently has a consensus target price of $47.40, indicating a potential upside of 3.46%. Omega Healthcare Investors has a consensus target price of $49.93, indicating a potential upside of 4.90%. Given Omega Healthcare Investors’ higher probable upside, analysts clearly believe Omega Healthcare Investors is more favorable than LTC Properties.

Dividends

LTC Properties pays an annual dividend of $2.28 per share and has a dividend yield of 5.0%. Omega Healthcare Investors pays an annual dividend of $2.72 per share and has a dividend yield of 5.7%. 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. Omega Healthcare Investors pays out 97.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Risk & Volatility

LTC Properties has a beta of 0.55, suggesting that its stock price is 45% less volatile than the S&P 500. Comparatively, Omega Healthcare Investors has a beta of 0.56, suggesting that its stock price is 44% less volatile than the S&P 500.

Insider & Institutional Ownership

69.3% of LTC Properties shares are owned by institutional investors. Comparatively, 65.2% of Omega Healthcare Investors shares are owned by institutional investors. 2.2% of LTC Properties shares are owned by insiders. Comparatively, 1.7% of Omega Healthcare Investors shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares LTC Properties and Omega Healthcare Investors”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	9.40	$117.97 million	$2.71	16.91
Omega Healthcare Investors	$1.19 billion	12.12	$572.03 million	$2.80	17.00

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

Summary

Omega Healthcare Investors beats LTC Properties on 12 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 Omega Healthcare Investors

Omega Healthcare Investors, Inc. engages in the provision of financing and capital to the long-term healthcare industry with a particular focus on skilled nursing facilities, assisted living facilities, independent living facilities, rehabilitation and acute care facilities, and medical office buildings. The company was founded on March 31, 1992 and is headquartered in Hunt Valley, MD.