Comparing Medical Properties Trust (MPT) and The Competition

Medical Properties Trust (NYSE:MPT) is one of 111 public companies in the “REIT – EQTY TRUST – OTHER” industry, but how does it contrast to its peers? We will compare Medical Properties Trust to related businesses based on the strength of its profitability, institutional ownership, dividends, valuation, analyst recommendations, risk and earnings.

Dividends

Medical Properties Trust pays an annual dividend of $0.36 per share and has a dividend yield of 6.6%. Medical Properties Trust pays out -78.3% of its earnings in the form of a dividend. As a group, “REIT – EQTY TRUST – OTHER” companies pay a dividend yield of 4.6% and pay out 233.5% of their earnings in the form of a dividend. Medical Properties Trust is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.

Analyst Ratings

This is a summary of current recommendations for Medical Properties Trust and its peers, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Medical Properties Trust	2	2	2	0	2.00
Medical Properties Trust Competitors	2341	7941	8273	278	2.34

Medical Properties Trust currently has a consensus target price of $6.75, suggesting a potential upside of 23.18%. As a group, “REIT – EQTY TRUST – OTHER” companies have a potential upside of 8.67%. Given Medical Properties Trust’s higher probable upside, equities analysts plainly believe Medical Properties Trust is more favorable than its peers.

Valuation and Earnings

This table compares Medical Properties Trust and its peers top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Medical Properties Trust	$972.02 million	-$277.05 million	-11.91
Medical Properties Trust Competitors	$1.58 billion	$198.35 million	29.75

Medical Properties Trust’s peers have higher revenue and earnings than Medical Properties Trust. Medical Properties Trust is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Medical Properties Trust	-28.50%	-5.87%	-1.85%
Medical Properties Trust Competitors	-0.08%	1.32%	0.82%

Risk & Volatility

Medical Properties Trust has a beta of 1.39, indicating that its stock price is 39% more volatile than the S&P 500. Comparatively, Medical Properties Trust’s peers have a beta of 1.20, indicating that their average stock price is 20% more volatile than the S&P 500.

Institutional and Insider Ownership

71.8% of Medical Properties Trust shares are held by institutional investors. Comparatively, 75.9% of shares of all “REIT – EQTY TRUST – OTHER” companies are held by institutional investors. 1.3% of Medical Properties Trust shares are held by insiders. Comparatively, 5.9% of shares of all “REIT – EQTY TRUST – OTHER” companies are held 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.

Summary

Medical Properties Trust peers beat Medical Properties Trust on 11 of the 15 factors compared.

Medical Properties Trust Company Profile

Medical Properties Trust, Inc. is a self-advised real estate investment trust formed in 2003 to acquire and develop net-leased hospital facilities. From its inception in Birmingham, Alabama, the Company has grown to become one of the world's largest owners of hospital real estate with 441 facilities and approximately 44,000 licensed beds as of September 30, 2023. Since the end of the third quarter, the Company has sold four facilities and now owns approximately 43,000 licensed beds in nine countries across three continents. MPT's financing model facilitates acquisitions and recapitalizations and allows operators of hospitals to unlock the value of their real estate assets to fund facility improvements, technology upgrades and other investments in operations.