Financial Contrast: Weyerhaeuser (NYSE:WY) & LTC Properties (NYSE:LTC)

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

Analyst Recommendations

This is a summary of recent ratings and target prices for LTC Properties and Weyerhaeuser, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
LTC Properties	0	2	1	0	2.33
Weyerhaeuser	0	5	3	0	2.38

LTC Properties presently has a consensus target price of $37.00, suggesting a potential upside of 2.46%. Weyerhaeuser has a consensus target price of $36.33, suggesting a potential upside of 9.90%. Given Weyerhaeuser’s stronger consensus rating and higher probable upside, analysts plainly believe Weyerhaeuser is more favorable than LTC Properties.

Valuation & Earnings

This table compares LTC Properties and Weyerhaeuser”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
LTC Properties	$200.98 million	7.81	$89.74 million	$1.92	18.81
Weyerhaeuser	$7.53 billion	3.20	$839.00 million	$1.10	30.05

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

Insider & Institutional Ownership

69.3% of LTC Properties shares are owned by institutional investors. Comparatively, 83.0% of Weyerhaeuser shares are owned by institutional investors. 2.0% of LTC Properties shares are owned by insiders. Comparatively, 0.3% of Weyerhaeuser shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Dividends

LTC Properties pays an annual dividend of $2.28 per share and has a dividend yield of 6.3%. Weyerhaeuser pays an annual dividend of $0.80 per share and has a dividend yield of 2.4%. LTC Properties pays out 118.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Weyerhaeuser pays out 72.7% of its earnings in the form of a dividend.

Profitability

This table compares LTC Properties and Weyerhaeuser’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
LTC Properties	46.78%	10.22%	5.06%
Weyerhaeuser	9.89%	6.19%	3.69%

Volatility and Risk

LTC Properties has a beta of 0.91, indicating that its stock price is 9% less volatile than the S&P 500. Comparatively, Weyerhaeuser has a beta of 1.4, indicating that its stock price is 40% more volatile than the S&P 500.

Summary

Weyerhaeuser beats LTC Properties on 9 of the 16 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 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.

About Weyerhaeuser

Weyerhaeuser Company, one of the world's largest private owners of timberlands, began operations in 1900. We own or control approximately 11 million acres of timberlands in the U.S. and manage additional timberlands under long-term licenses in Canada. We manage these timberlands on a sustainable basis in compliance with internationally recognized forestry standards. We are also one of the largest manufacturers of wood products in North America. Our company is a real estate investment trust. In 2022, we generated $10.2 billion in net sales and employed approximately 9,200 people who serve customers worldwide. Our common stock trades on the New York Stock Exchange under the symbol WY.