Analyzing Medical Properties Trust (NYSE:MPT) and Equity Commonwealth (NYSE:EQC)

Equity Commonwealth (NYSE:EQCGet Free Report) and Medical Properties Trust (NYSE:MPTGet Free Report) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, dividends, valuation and analyst recommendations.

Profitability

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

Net Margins Return on Equity Return on Assets
Equity Commonwealth 82.00% 2.09% 1.96%
Medical Properties Trust -28.50% -5.87% -1.85%

Earnings & Valuation

This table compares Equity Commonwealth and Medical Properties Trust”s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Equity Commonwealth $58.43 million 2.90 $91.16 million $0.39 4.05
Medical Properties Trust $972.02 million 2.87 -$277.05 million ($0.46) -10.13

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

Analyst Ratings

This is a summary of current ratings and recommmendations for Equity Commonwealth and Medical Properties Trust, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Equity Commonwealth 0 0 0 0 0.00
Medical Properties Trust 1 0 0 0 1.00

Volatility and Risk

Equity Commonwealth has a beta of 0.57, indicating that its share price is 43% less volatile than the S&P 500. Comparatively, Medical Properties Trust has a beta of 1.39, indicating that its share price is 39% more volatile than the S&P 500.

Insider & Institutional Ownership

96.0% of Equity Commonwealth shares are owned by institutional investors. Comparatively, 71.8% of Medical Properties Trust shares are owned by institutional investors. 2.1% of Equity Commonwealth shares are owned by insiders. Comparatively, 1.3% of Medical Properties Trust shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

Equity Commonwealth beats Medical Properties Trust on 9 of the 12 factors compared between the two stocks.

About Equity Commonwealth

(Get Free Report)

Equity Commonwealth (NYSE: EQC) is a Chicago based, internally managed and self-advised real estate investment trust (REIT) with commercial office properties in the United States. EQC's portfolio is comprised of four properties totaling 1.5 million square feet.

About Medical Properties Trust

(Get Free Report)

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 allows hospitals and other healthcare facilities to unlock the value of their underlying real estate in order to fund facility improvements, technology upgrades, staff additions and new construction. Facilities include acute care hospitals, inpatient rehabilitation hospitals, long-term acute care hospitals, and other medical and surgical facilities.

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