Medical Properties Trust (NYSE:MPW) and Vereit (NYSE:VER) are both mid-cap finance companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, analyst recommendations, risk, earnings, profitability, institutional ownership and valuation.

Insider and Institutional Ownership

83.2% of Medical Properties Trust shares are owned by institutional investors. Comparatively, 94.5% of Vereit shares are owned by institutional investors. 1.2% of Medical Properties Trust shares are owned by company insiders. Comparatively, 0.3% of Vereit shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Volatility and Risk

Medical Properties Trust has a beta of 0.5, meaning that its stock price is 50% less volatile than the S&P 500. Comparatively, Vereit has a beta of 1.02, meaning that its stock price is 2% more volatile than the S&P 500.

Valuation & Earnings

This table compares Medical Properties Trust and Vereit’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Medical Properties Trust $854.20 million 11.21 $374.68 million $1.30 13.93
Vereit $1.24 billion 6.22 -$300.35 million $0.69 10.35

Medical Properties Trust has higher earnings, but lower revenue than Vereit. Vereit is trading at a lower price-to-earnings ratio than Medical Properties Trust, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent recommendations for Medical Properties Trust and Vereit, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Medical Properties Trust 0 3 9 0 2.75
Vereit 0 3 4 0 2.57

Medical Properties Trust currently has a consensus target price of $20.88, indicating a potential upside of 15.27%. Vereit has a consensus target price of $8.40, indicating a potential upside of 17.65%. Given Vereit’s higher possible upside, analysts clearly believe Vereit is more favorable than Medical Properties Trust.

Profitability

This table compares Medical Properties Trust and Vereit’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Medical Properties Trust 38.41% 6.29% 2.95%
Vereit -43.35% -7.49% -3.71%

Dividends

Medical Properties Trust pays an annual dividend of $1.08 per share and has a dividend yield of 6.0%. Vereit pays an annual dividend of $0.31 per share and has a dividend yield of 4.3%. Medical Properties Trust pays out 83.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Vereit pays out 44.9% of its earnings in the form of a dividend. Medical Properties Trust has raised its dividend for 5 consecutive years and Vereit has raised its dividend for 1 consecutive years. Medical Properties Trust is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Medical Properties Trust beats Vereit on 12 of the 17 factors compared between the two stocks.

Medical Properties Trust Company Profile

Medical Properties Trust, Inc. is a self-advised real estate investment trust formed to capitalize on the changing trends in healthcare delivery by acquiring and developing net-leased healthcare facilities. MPT's financing model helps facilitate acquisitions and recapitalizations and allows operators of hospitals and other healthcare facilities to unlock the value of their real estate assets to fund facility improvements, technology upgrades and other investments in operations. Facilities include acute care hospitals, inpatient rehabilitation hospitals, long-term acute care hospitals, and other medical and surgical facilities.

Vereit Company Profile

VEREIT is a full-service real estate operating company which owns and manages one of the largest portfolios of single-tenant commercial properties in the U.S. The Company has total real estate investments of $15.6 billion including approximately 4,000 properties and 94.7 million square feet. VEREIT's business model provides equity capital to creditworthy corporations in return for long-term leases on their properties. VEREIT is a publicly traded Maryland corporation listed on the New York Stock Exchange. VEREIT uses, and intends to continue to use, its Investor Relations website, which can be found at www.VEREIT.com, as a means of disclosing material nonpublic information and for complying with its disclosure obligations under Regulation FD.

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