LTC Properties (LTC) vs. National Health Investors (NHI) Critical Contrast

National Health Investors (NYSE: NHI) and LTC Properties (NYSE:LTC) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, profitabiliy, analyst recommendations, earnings and risk.

Analyst Ratings

This is a summary of recent ratings and recommmendations for National Health Investors and LTC Properties, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
National Health Investors 1 3 1 0 2.00
LTC Properties 0 6 2 0 2.25

National Health Investors currently has a consensus target price of $78.00, suggesting a potential downside of 0.05%. LTC Properties has a consensus target price of $52.67, suggesting a potential upside of 5.44%. Given LTC Properties’ stronger consensus rating and higher probable upside, analysts plainly believe LTC Properties is more favorable than National Health Investors.

Institutional and Insider Ownership

69.1% of National Health Investors shares are owned by institutional investors. Comparatively, 83.1% of LTC Properties shares are owned by institutional investors. 5.2% of National Health Investors shares are owned by company insiders. Comparatively, 1.7% of LTC Properties shares are owned 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.

Earnings & Valuation

This table compares National Health Investors and LTC Properties’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
National Health Investors $255.06 million 12.54 $233.77 million $4.12 18.94
LTC Properties $165.48 million 11.95 $147.17 million $2.22 22.50

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

Risk and Volatility

National Health Investors has a beta of 0.6, meaning that its stock price is 40% less volatile than the S&P 500. Comparatively, LTC Properties has a beta of 0.2, meaning that its stock price is 80% less volatile than the S&P 500.

Dividends

National Health Investors pays an annual dividend of $3.80 per share and has a dividend yield of 4.9%. LTC Properties pays an annual dividend of $2.28 per share and has a dividend yield of 4.6%. National Health Investors pays out 92.2% 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 pays out 102.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. National Health Investors has increased its dividend for 7 consecutive years and LTC Properties has increased its dividend for 5 consecutive years. National Health Investors is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares National Health Investors and LTC Properties’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
National Health Investors 63.72% 13.36% 6.76%
LTC Properties 52.17% 11.66% 6.24%

Summary

National Health Investors beats LTC Properties on 12 of the 17 factors compared between the two stocks.

About National Health Investors

National Health Investors, Inc. is a self-managed real estate investment trust (REIT) specializing in sale-leaseback, joint-venture, mortgage and mezzanine financing of need-driven and discretionary senior housing and medical investments. The Company is engaged in the business of owning and financing healthcare properties. Its portfolio consists of lease, mortgage and other note investments in independent living facilities, assisted living facilities, entrance-fee communities, senior living campuses, skilled nursing facilities, specialty hospitals and medical office buildings. Its other investments include marketable securities and a joint venture structured to comply with the provisions of the REIT Investment Diversification Empowerment Act of 2007 (RIDEA) through which it invests in facility operations managed by an independent third party. As of December 31, 2016, it had investments in real estate, mortgage and other notes receivable involving 205 facilities located in 32 states.

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.

This story was originally published by WKRB News (https://www.wkrb13.com) and is the sole property of WKRB News. If you are reading this article on another website, that means this article was illegally copied and re-published to this website in violation of U.S. and International copyright law. You can view the original version of this story at https://www.wkrb13.com/markets/2230844/ltc-properties-ltc-vs-national-health-investors-nhi-critical-contrast.html

Receive News & Ratings for National Health Investors Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for National Health Investors Inc. and related companies with MarketBeat.com's FREE daily email newsletter.

 


Leave a Reply

 
© 2006-2017 WKRB News.