MedEquities Realty Trust (NYSE:MRT) vs. Medical Properties Trust (MPW) Financial Analysis
MedEquities Realty Trust (NYSE: MRT) and Medical Properties Trust (NYSE:MPW) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, risk, analyst recommendations, earnings, dividends and profitabiliy.
Institutional and Insider Ownership
95.2% of MedEquities Realty Trust shares are owned by institutional investors. Comparatively, 78.5% of Medical Properties Trust shares are owned by institutional investors. 2.5% of MedEquities Realty Trust shares are owned by company insiders. Comparatively, 1.0% of Medical Properties Trust shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Valuation & Earnings
This table compares MedEquities Realty Trust and Medical Properties Trust’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|MedEquities Realty Trust||$48.73 million||7.75||$39.04 million||N/A||N/A|
|Medical Properties Trust||$568.13 million||8.16||$468.31 million||$0.84||15.15|
Medical Properties Trust has higher revenue and earnings than MedEquities Realty Trust.
This table compares MedEquities Realty Trust and Medical Properties Trust’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|MedEquities Realty Trust||26.72%||3.27%||1.94%|
|Medical Properties Trust||41.79%||7.94%||3.85%|
This is a breakdown of recent ratings and target prices for MedEquities Realty Trust and Medical Properties Trust, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|MedEquities Realty Trust||1||1||5||0||2.57|
|Medical Properties Trust||2||4||6||0||2.33|
MedEquities Realty Trust presently has a consensus target price of $12.86, indicating a potential upside of 8.13%. Medical Properties Trust has a consensus target price of $14.11, indicating a potential upside of 10.85%. Given Medical Properties Trust’s higher possible upside, analysts plainly believe Medical Properties Trust is more favorable than MedEquities Realty Trust.
MedEquities Realty Trust pays an annual dividend of $0.84 per share and has a dividend yield of 7.1%. Medical Properties Trust pays an annual dividend of $0.96 per share and has a dividend yield of 7.5%. Medical Properties Trust pays out 114.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Medical Properties Trust has increased its dividend for 3 consecutive years. Medical Properties Trust is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Medical Properties Trust beats MedEquities Realty Trust on 10 of the 15 factors compared between the two stocks.
MedEquities Realty Trust Company Profile
MedEquities Realty Trust, Inc. is a real estate investment trust (REIT). The Company invests in a diversified mix of healthcare properties and healthcare-related real estate debt investments. The Company invests primarily in real estate across the acute and post-acute spectrum of care. It focuses on investing in various types of healthcare properties, including acute care hospitals; skilled nursing facilities; short-stay surgical and specialty hospitals, which focus on orthopedic, heart and other dedicated surgeries and specialty procedures; dedicated specialty hospitals, such as inpatient rehabilitation facilities, long-term acute care hospitals and facilities providing psychiatric care; physician clinics; diagnostic facilities; outpatient surgery centers, and facilities that support these services, such as medical office buildings. As of September 30, 2016, the Company’s portfolio included 24 healthcare facilities and one healthcare-related debt investment.
Medical Properties Trust Company Profile
Medical Properties Trust, Inc. is a real estate investment trust (REIT). The Company focuses on investing in and owning net-leased healthcare facilities across the United States and selectively in foreign jurisdictions. The Company’s segment is its investments in healthcare real estate, including mortgage and other loans, as well as any equity investments in its tenants. The Company conducts its operations through MPT Operating Partnership, L.P. The Company acquires and develops healthcare facilities, and leases the facilities to healthcare operating companies under long-term net leases. The Company makes mortgage loans to healthcare operators collateralized by their real estate assets. As of February 24, 2017, the Company’s portfolio consisted of 232 properties, including 215 facilities (of the 220 facilities that it owns) were leased to 30 tenants, five were under development, and the remaining assets were in the form of mortgage loans to four operators.
Receive News & Ratings for MedEquities Realty Trust Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for MedEquities Realty Trust Inc. and related companies with MarketBeat.com's FREE daily email newsletter.