LTC Properties (NYSE:LTC) and Alexandria Real Estate Equities (NYSE:ARE) Critical Analysis

Alexandria Real Estate Equities (NYSE:ARE) and LTC Properties (NYSE:LTC) are both mid-cap real estate companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, profitability, earnings, risk, institutional ownership, dividends and valuation.

Institutional and Insider Ownership

96.5% of Alexandria Real Estate Equities shares are owned by institutional investors. Comparatively, 69.3% of LTC Properties shares are owned by institutional investors. 1.4% of Alexandria Real Estate Equities shares are owned by insiders. Comparatively, 2.2% of LTC Properties shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Volatility & Risk

Alexandria Real Estate Equities has a beta of 1.15, suggesting that its stock price is 15% more volatile than the S&P 500. Comparatively, LTC Properties has a beta of 0.56, suggesting that its stock price is 44% less volatile than the S&P 500.

Dividends

Alexandria Real Estate Equities pays an annual dividend of $2.88 per share and has a dividend yield of 5.5%. LTC Properties pays an annual dividend of $2.28 per share and has a dividend yield of 5.6%. Alexandria Real Estate Equities pays out -47.5% of its earnings in the form of a dividend. 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. Alexandria Real Estate Equities has raised its dividend for 15 consecutive years.

Profitability

This table compares Alexandria Real Estate Equities and LTC Properties’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Alexandria Real Estate Equities	-36.08%	-5.21%	-2.92%
LTC Properties	38.84%	11.42%	6.45%

Analyst Ratings

This is a summary of current ratings for Alexandria Real Estate Equities and LTC Properties, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alexandria Real Estate Equities	3	11	2	0	1.94
LTC Properties	0	4	5	0	2.56

Alexandria Real Estate Equities currently has a consensus price target of $52.85, indicating a potential upside of 1.01%. LTC Properties has a consensus price target of $43.67, indicating a potential upside of 7.31%. Given LTC Properties’ stronger consensus rating and higher possible upside, analysts clearly believe LTC Properties is more favorable than Alexandria Real Estate Equities.

Valuation and Earnings

This table compares Alexandria Real Estate Equities and LTC Properties”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Alexandria Real Estate Equities	$3.03 billion	3.01	-$1.43 billion	($6.06)	-8.63
LTC Properties	$347.85 million	6.31	$117.97 million	$2.71	15.02

LTC Properties has lower revenue, but higher earnings than Alexandria Real Estate Equities. Alexandria Real Estate Equities is trading at a lower price-to-earnings ratio than LTC Properties, indicating that it is currently the more affordable of the two stocks.

Summary

LTC Properties beats Alexandria Real Estate Equities on 12 of the 17 factors compared between the two stocks.

About Alexandria Real Estate Equities

Alexandria Real Estate Equities, Inc. (NYSE: ARE), an S&P 500 company, is a best-in-class, mission-driven life science REIT making a positive and lasting impact on the world. As the pioneer of the life science real estate niche since our founding in 1994, Alexandria is the preeminent and longest-tenured owner, operator, and developer of collaborative life science, agtech, and advanced technology mega campuses in AAA innovation cluster locations, including Greater Boston, the San Francisco Bay Area, New York City, San Diego, Seattle, Maryland, and Research Triangle. Alexandria has a total market capitalization of $33.1 billion and an asset base in North America of 73.5 million SF as of December 31, 2023, which includes 42.0 million RSF of operating properties, 5.5 million RSF of Class A/A+ properties undergoing construction and one near-term project expected to commence construction in the next two years, 2.1 million RSF of priority anticipated development and redevelopment projects, and 23.9 million SF of future development projects. Alexandria has a longstanding and proven track record of developing Class A/A+ properties clustered in life science, agtech, and advanced technology mega campuses that provide our innovative tenants with highly dynamic and collaborative environments that enhance their ability to successfully recruit and retain world-class talent and inspire productivity, efficiency, creativity, and success. Alexandria also provides strategic capital to transformative life science, agrifoodtech, climate innovation, and technology companies through our venture capital platform. We believe our unique business model and diligent underwriting ensure a high-quality and diverse tenant base that results in higher occupancy levels, longer lease terms, higher rental income, higher returns, and greater long-term asset value.

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.