Head to Head Comparison: LTC Properties (NYSE:LTC) vs. W. P. Carey (NYSE:WPC)

W. P. Carey (NYSE:WPC) and LTC Properties (NYSE:LTC) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, profitability, dividends, analyst recommendations, earnings, institutional ownership and risk.

Profitability

This table compares W. P. Carey and LTC Properties’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
W. P. Carey	35.12%	6.45%	3.14%
LTC Properties	48.77%	10.49%	5.44%

Earnings and Valuation

This table compares W. P. Carey and LTC Properties”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
W. P. Carey	$1.74 billion	6.96	$708.33 million	$2.54	21.81
LTC Properties	$197.24 million	8.70	$89.74 million	$2.33	16.28

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

Analyst Recommendations

This is a summary of current ratings and price targets for W. P. Carey and LTC Properties, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
W. P. Carey	0	7	2	0	2.22
LTC Properties	0	2	1	0	2.33

W. P. Carey presently has a consensus target price of $63.25, indicating a potential upside of 14.17%. LTC Properties has a consensus target price of $37.00, indicating a potential downside of 2.45%. Given W. P. Carey’s higher probable upside, analysts plainly believe W. P. Carey is more favorable than LTC Properties.

Institutional and Insider Ownership

73.7% of W. P. Carey shares are held by institutional investors. Comparatively, 69.3% of LTC Properties shares are held by institutional investors. 1.2% of W. P. Carey shares are held by insiders. Comparatively, 2.0% of LTC Properties shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Risk and Volatility

W. P. Carey has a beta of 0.95, suggesting that its stock price is 5% less volatile than the S&P 500. Comparatively, LTC Properties has a beta of 0.9, suggesting that its stock price is 10% less volatile than the S&P 500.

Dividends

W. P. Carey pays an annual dividend of $3.50 per share and has a dividend yield of 6.3%. LTC Properties pays an annual dividend of $2.28 per share and has a dividend yield of 6.0%. W. P. Carey pays out 137.8% 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 97.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Summary

W. P. Carey beats LTC Properties on 9 of the 16 factors compared between the two stocks.

About W. P. Carey

W. P. Carey ranks among the largest net lease REITs with a well-diversified portfolio of high-quality, operationally critical commercial real estate, which includes 1,424 net lease properties covering approximately 173 million square feet and a portfolio of 89 self-storage operating properties as of December 31, 2023. With offices in New York, London, Amsterdam and Dallas, the company remains focused on investing primarily in single-tenant, industrial, warehouse and retail properties located in the U.S. and Northern and Western Europe, under long-term net leases with built-in rent escalations.

About LTC Properties

LTC is a real estate investment trust (REIT) investing in seniors housing and health care properties primarily through sale-leasebacks, mortgage financing, joint-ventures and structured finance solutions including preferred equity and mezzanine lending. LTC's investment portfolio includes 201 properties in 26 states with 29 operating partners. Based on its gross real estate investments, LTC's investment portfolio is comprised of approximately 50% seniors housing and 50% skilled nursing properties.