Critical Review: LTC Properties (LTC) versus Community Healthcare Trust (CHCT)
LTC Properties (NYSE: LTC) and Community Healthcare Trust (NYSE:CHCT) are both small-cap finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, dividends, profitability, institutional ownership, risk and valuation.
Risk & Volatility
LTC Properties has a beta of 0.18, suggesting that its share price is 82% less volatile than the S&P 500. Comparatively, Community Healthcare Trust has a beta of 1.01, suggesting that its share price is 1% more volatile than the S&P 500.
Earnings and Valuation
This table compares LTC Properties and Community Healthcare Trust’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|LTC Properties||$161.58 million||11.55||$85.11 million||$2.28||20.70|
|Community Healthcare Trust||$25.20 million||19.80||$2.72 million||$0.27||102.60|
LTC Properties has higher revenue and earnings than Community Healthcare Trust. LTC Properties is trading at a lower price-to-earnings ratio than Community Healthcare Trust, indicating that it is currently the more affordable of the two stocks.
LTC Properties pays an annual dividend of $2.28 per share and has a dividend yield of 4.8%. Community Healthcare Trust pays an annual dividend of $1.57 per share and has a dividend yield of 5.7%. LTC Properties pays out 100.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Community Healthcare Trust pays out 581.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. LTC Properties has increased its dividend for 5 consecutive years.
This table compares LTC Properties and Community Healthcare Trust’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Community Healthcare Trust||11.30%||1.81%||1.33%|
This is a breakdown of current ratings and recommmendations for LTC Properties and Community Healthcare Trust, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Community Healthcare Trust||0||0||1||0||3.00|
LTC Properties presently has a consensus target price of $50.17, indicating a potential upside of 6.31%. Community Healthcare Trust has a consensus target price of $26.50, indicating a potential downside of 4.33%. Given LTC Properties’ higher possible upside, equities research analysts clearly believe LTC Properties is more favorable than Community Healthcare Trust.
Insider and Institutional Ownership
80.8% of LTC Properties shares are owned by institutional investors. Comparatively, 62.5% of Community Healthcare Trust shares are owned by institutional investors. 1.5% of LTC Properties shares are owned by insiders. Comparatively, 5.5% of Community Healthcare Trust 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.
LTC Properties beats Community Healthcare Trust on 11 of the 17 factors compared between the two stocks.
About LTC Properties
LTC Properties Inc. is a healthcare real estate investment trust (REIT). The Company invests in senior housing and healthcare properties through sale-leaseback transactions, mortgage financing and structured finance solutions, including mezzanine lending. It invests in various properties, including Skilled nursing facilities (SNF), Assisted living facilities (ALF), Independent living facilities (ILF), Memory care facilities (MC) and Range of care facilities (ROC). SNF provides restorative, rehabilitative and nursing care. Many skilled nursing facilities provide ancillary services that include occupational, speech, physical, respiratory and IV therapies, as well as sub-acute care services, which are paid either by the patient, the patient’s family, private health insurance, or through the federal Medicare or state Medicaid programs. ALF serves people requiring assistance with activities of daily living, but do not require the constant supervision skilled nursing facilities provide.
About Community Healthcare Trust
Community Healthcare Trust Incorporated is an integrated healthcare real estate company. The Company owns and acquires, or finances, real estate properties that are leased to hospitals, doctors, healthcare systems or other healthcare service providers in non-urban markets. It has investments in healthcare real estate, including mortgage and other loans. The Company’s medical office buildings are located in areas, such as, Florida, Georgia, Illinois, Kentucky, Ohio and Texas. Its physician clinics are located in Alabama, Florida, Kansas, Pennsylvania and Wisconsin. Its surgical centers and hospitals are located in areas, such as Louisiana, Michigan and Arizona. Its behavioral facilities are located in Indiana and Illinois. Its specialty centers are located in Texas, Colorado and Alabama, among others. As of December 31, 2016, the Company had interests in 57 real estate properties and one mortgage note, located in 22 states, totaling over 1.33 million square feet in the aggregate.
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