Analyzing Omega Healthcare Investors (OHI) and MedEquities Realty Trust (MRT)
Omega Healthcare Investors (NYSE: OHI) and MedEquities Realty Trust (NYSE:MRT) are both finance companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, risk, profitability, institutional ownership, earnings, analyst recommendations and valuation.
This table compares Omega Healthcare Investors and MedEquities Realty Trust’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Omega Healthcare Investors||40.20%||8.88%||4.17%|
|MedEquities Realty Trust||32.68%||5.58%||3.52%|
Valuation & Earnings
This table compares Omega Healthcare Investors and MedEquities Realty Trust’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Omega Healthcare Investors||$926.66 million||6.74||$853.50 million||$1.89||16.76|
|MedEquities Realty Trust||$56.96 million||6.39||$46.67 million||$0.35||32.77|
Omega Healthcare Investors has higher revenue and earnings than MedEquities Realty Trust. Omega Healthcare Investors is trading at a lower price-to-earnings ratio than MedEquities Realty Trust, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of current recommendations and price targets for Omega Healthcare Investors and MedEquities Realty Trust, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Omega Healthcare Investors||0||2||0||0||2.00|
|MedEquities Realty Trust||1||1||5||0||2.57|
Omega Healthcare Investors presently has a consensus price target of $33.00, suggesting a potential upside of 4.17%. MedEquities Realty Trust has a consensus price target of $12.86, suggesting a potential upside of 12.09%. Given MedEquities Realty Trust’s stronger consensus rating and higher possible upside, analysts clearly believe MedEquities Realty Trust is more favorable than Omega Healthcare Investors.
Institutional & Insider Ownership
74.6% of Omega Healthcare Investors shares are owned by institutional investors. Comparatively, 92.9% of MedEquities Realty Trust shares are owned by institutional investors. 4.5% of Omega Healthcare Investors shares are owned by insiders. Comparatively, 2.5% of MedEquities Realty 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.
Omega Healthcare Investors pays an annual dividend of $2.56 per share and has a dividend yield of 8.1%. MedEquities Realty Trust pays an annual dividend of $0.84 per share and has a dividend yield of 7.3%. Omega Healthcare Investors pays out 135.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. MedEquities Realty Trust pays out 240.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Omega Healthcare Investors has increased its dividend for 7 consecutive years. Omega Healthcare Investors is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Omega Healthcare Investors beats MedEquities Realty Trust on 11 of the 16 factors compared between the two stocks.
Omega Healthcare Investors Company Profile
Omega Healthcare Investors, Inc. is a self-administered real estate investment trust (REIT). The Company maintains a portfolio of long-term healthcare facilities and mortgages on healthcare facilities located in the United States and the United Kingdom. It operates through the segment, which consists of investments in healthcare-related real estate properties. It provides lease or mortgage financing to qualified operators of skilled nursing facilities (SNFs) and assisted living facilities (ALFs), independent living facilities, rehabilitation and acute care facilities. Its portfolio consists of long-term leases and mortgage agreements. As of December 31, 2016, its portfolio of investments included 996 healthcare facilities located in 42 states and the United Kingdom and operated by 79 third-party operators. As of December 31, 2016, the Company’s portfolio consisted of 809 SNFs, 101 ALFs, 16 specialty facilities, one medical office building, fixed rate mortgages on 44 SNFs and two ALFs.
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.
Receive News & Ratings for Omega Healthcare Investors Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Omega Healthcare Investors Inc. and related companies with Analyst Ratings Network's FREE daily email newsletter.