Physicians Realty Trust (NYSE: DOC) and LTC Properties (NYSE:LTC) are both finance companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, risk, profitability, earnings and valuation.

Profitability

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

Net Margins Return on Equity Return on Assets
Physicians Realty Trust 11.51% 1.75% 1.10%
LTC Properties 53.36% 11.99% 6.41%

Insider and Institutional Ownership

94.2% of Physicians Realty Trust shares are held by institutional investors. Comparatively, 81.1% of LTC Properties shares are held by institutional investors. 0.5% of Physicians Realty Trust shares are held by insiders. Comparatively, 1.5% of LTC Properties shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Risk and Volatility

Physicians Realty Trust has a beta of 0.53, meaning that its share price is 47% less volatile than the S&P 500. Comparatively, LTC Properties has a beta of 0.16, meaning that its share price is 84% less volatile than the S&P 500.

Analyst Ratings

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Physicians Realty Trust 0 3 10 0 2.77
LTC Properties 1 6 3 0 2.20

Physicians Realty Trust currently has a consensus price target of $20.54, suggesting a potential upside of 18.74%. LTC Properties has a consensus price target of $50.17, suggesting a potential upside of 9.58%. Given Physicians Realty Trust’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Physicians Realty Trust is more favorable than LTC Properties.

Valuation and Earnings

This table compares Physicians Realty Trust and LTC Properties’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Physicians Realty Trust $296.22 million 9.20 $195.49 million $0.23 75.22
LTC Properties $167.79 million 10.79 $147.45 million $2.28 20.08

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

Dividends

Physicians Realty Trust pays an annual dividend of $0.92 per share and has a dividend yield of 5.3%. LTC Properties pays an annual dividend of $2.28 per share and has a dividend yield of 5.0%. Physicians Realty Trust pays out 400.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. 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. LTC Properties has increased its dividend for 5 consecutive years.

Summary

Physicians Realty Trust beats LTC Properties on 9 of the 17 factors compared between the two stocks.

Physicians Realty Trust Company Profile

Physicians Realty Trust (the Trust) is a real estate investment trust. Physicians Realty L.P. is the operating partnership of the Trust. The Trust and its operating partnership are engaged in acquiring, developing, owning and managing healthcare properties that are leased to physicians, hospitals and healthcare delivery systems. As of December 31, 2016, the Company’s portfolio consisted of 246 properties located in 29 states with approximately 10,883,601 net leasable square feet. The Company invests in real estate that is integral to providing healthcare services. The Company focuses its investment activity on various types of healthcare properties, such as medical office buildings; outpatient treatment and diagnostic facilities; physician group practice clinics; ambulatory surgery centers, and specialty hospitals and treatment centers. Its properties include Arrowhead Commons, Aurora Medical Office Building, Decatur Medical Office Building and El Paso Medical Office Building.

LTC Properties Company Profile

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.

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