Head-To-Head Contrast: Medical Properties Trust (MPW) vs. Ventas (VTR)
Medical Properties Trust (NYSE: MPW) and Ventas (NYSE:VTR) are both mid-cap financials 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.
Valuation & Earnings
This table compares Medical Properties Trust and Ventas’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Medical Properties Trust||$541.14 million||9.14||$225.04 million||$0.76||17.87|
|Ventas||$3.44 billion||6.55||$649.23 million||$1.68||37.68|
Volatility and Risk
Medical Properties Trust has a beta of 0.96, meaning that its stock price is 4% less volatile than the S&P 500. Comparatively, Ventas has a beta of 0.09, meaning that its stock price is 91% less volatile than the S&P 500.
Insider and Institutional Ownership
81.4% of Medical Properties Trust shares are owned by institutional investors. Comparatively, 90.4% of Ventas shares are owned by institutional investors. 1.0% of Medical Properties Trust shares are owned by company insiders. Comparatively, 1.3% of Ventas 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.
This table compares Medical Properties Trust and Ventas’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Medical Properties Trust||39.95%||7.36%||3.54%|
This is a summary of recent recommendations for Medical Properties Trust and Ventas, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Medical Properties Trust||2||4||6||0||2.33|
Medical Properties Trust currently has a consensus target price of $14.10, indicating a potential upside of 3.83%. Ventas has a consensus target price of $64.25, indicating a potential upside of 1.48%. Given Medical Properties Trust’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Medical Properties Trust is more favorable than Ventas.
Medical Properties Trust pays an annual dividend of $0.96 per share and has a dividend yield of 7.1%. Ventas pays an annual dividend of $3.10 per share and has a dividend yield of 4.9%. Medical Properties Trust pays out 126.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Ventas pays out 184.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Medical Properties Trust has raised its dividend for 3 consecutive years and Ventas has raised its dividend for 6 consecutive years. Medical Properties Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.
Medical Properties Trust beats Ventas on 10 of the 17 factors compared between the two stocks.
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.
Ventas Company Profile
Ventas, Inc. is a real estate investment trust (REIT) with its properties located throughout the United States, Canada and the United Kingdom. The Company operates through three segments: triple-net leased properties, senior living operations and office operations. Under its triple-net leased properties segment, the Company invests in and owns seniors housing and healthcare properties throughout the United States and the United Kingdom and leases those properties to healthcare operating companies under triple-net or absolute-net leases that obligate the tenants to pay all property-related expenses. In its senior living operations segment, it invests in seniors housing communities throughout the United States and Canada and engages independent operators to manage those communities. In its office operations segment, the Company primarily acquires, owns, develops, leases and manages medical office buildings (MOBs) and life science and innovation centers throughout the United States.
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