LTC Properties (NYSE:LTC – Get Free Report) and Hannon Armstrong Sustainable Infrastructure Capital (NYSE:HASI – Get Free Report) are both small-cap real estate companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, dividends, valuation, profitability, risk, analyst recommendations and institutional ownership.
Valuation and Earnings
This table compares LTC Properties and Hannon Armstrong Sustainable Infrastructure Capital’s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| LTC Properties | $189.09 million | 7.15 | $100.02 million | $1.71 | 19.09 |
| Hannon Armstrong Sustainable Infrastructure Capital | $152.67 million | 12.19 | $41.50 million | $0.56 | 30.98 |
LTC Properties has higher revenue and earnings than Hannon Armstrong Sustainable Infrastructure Capital. LTC Properties is trading at a lower price-to-earnings ratio than Hannon Armstrong Sustainable Infrastructure Capital, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
Profitability
This table compares LTC Properties and Hannon Armstrong Sustainable Infrastructure Capital’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| LTC Properties | 37.24% | 8.28% | 4.04% |
| Hannon Armstrong Sustainable Infrastructure Capital | 19.94% | 10.20% | 3.60% |
Dividends
LTC Properties pays an annual dividend of $2.28 per share and has a dividend yield of 7.0%. Hannon Armstrong Sustainable Infrastructure Capital pays an annual dividend of $1.58 per share and has a dividend yield of 9.1%. LTC Properties pays out 133.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Hannon Armstrong Sustainable Infrastructure Capital pays out 282.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Hannon Armstrong Sustainable Infrastructure Capital has increased its dividend for 5 consecutive years. Hannon Armstrong Sustainable Infrastructure Capital is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Volatility and Risk
LTC Properties has a beta of 0.92, indicating that its stock price is 8% less volatile than the S&P 500. Comparatively, Hannon Armstrong Sustainable Infrastructure Capital has a beta of 1.69, indicating that its stock price is 69% more volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of recent ratings and price targets for LTC Properties and Hannon Armstrong Sustainable Infrastructure Capital, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| LTC Properties | 1 | 4 | 2 | 0 | 2.14 |
| Hannon Armstrong Sustainable Infrastructure Capital | 0 | 2 | 5 | 0 | 2.71 |
LTC Properties currently has a consensus price target of $34.78, suggesting a potential upside of 6.52%. Hannon Armstrong Sustainable Infrastructure Capital has a consensus price target of $35.75, suggesting a potential upside of 106.05%. Given Hannon Armstrong Sustainable Infrastructure Capital’s stronger consensus rating and higher probable upside, analysts clearly believe Hannon Armstrong Sustainable Infrastructure Capital is more favorable than LTC Properties.
Summary
Hannon Armstrong Sustainable Infrastructure Capital beats LTC Properties on 11 of the 17 factors compared between the two stocks.
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 213 properties in 29 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.
About Hannon Armstrong Sustainable Infrastructure Capital
Hannon Armstrong Sustainable Infrastructure Capital, Inc. provides capital and services to the energy efficiency, renewable energy, and other sustainable infrastructure markets in the United States. The company's projects include building or facility that reduce energy usage or cost through the use of solar generation and energy storage or energy efficiency improvements, including heating, ventilation, and air conditioning systems (HVAC), as well as lighting, energy controls, roofs, windows, building shells, and/or combined heat and power systems. It also focuses in the areas of grid connected projects that deploy cleaner energy sources, such as solar and wind to generate power; and sustainable infrastructure projects, including upgraded transmission or distribution systems, water and storm water infrastructures, transportation fleet enhancements, renewable natural gas plants, and other projects. The company qualifies as a real estate investment trust for U.S. federal income tax purposes. It generally would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. The company was founded in 1981 and is headquartered in Annapolis, Maryland.
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