Medical Properties Trust (NYSE:MPT) vs. Omega Healthcare Investors (NYSE:OHI) Head-To-Head Comparison

Omega Healthcare Investors (NYSE:OHI) and Medical Properties Trust (NYSE:MPT) are both real estate companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, valuation, analyst recommendations and dividends.

Risk & Volatility

Omega Healthcare Investors has a beta of 0.57, indicating that its stock price is 43% less volatile than the S&P 500. Comparatively, Medical Properties Trust has a beta of 1.41, indicating that its stock price is 41% more volatile than the S&P 500.

Dividends

Omega Healthcare Investors pays an annual dividend of $2.72 per share and has a dividend yield of 5.6%. Medical Properties Trust pays an annual dividend of $0.36 per share and has a dividend yield of 7.8%. Omega Healthcare Investors pays out 97.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Medical Properties Trust pays out -171.4% of its earnings in the form of a dividend. Medical Properties Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.

Insider and Institutional Ownership

65.2% of Omega Healthcare Investors shares are owned by institutional investors. Comparatively, 71.8% of Medical Properties Trust shares are owned by institutional investors. 1.7% of Omega Healthcare Investors shares are owned by insiders. Comparatively, 1.8% of Medical Properties Trust shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings for Omega Healthcare Investors and Medical Properties Trust, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Omega Healthcare Investors	2	7	6	0	2.27
Medical Properties Trust	1	1	0	0	1.50

Omega Healthcare Investors currently has a consensus price target of $49.21, indicating a potential upside of 1.16%. Medical Properties Trust has a consensus price target of $4.50, indicating a potential downside of 2.81%. Given Omega Healthcare Investors’ stronger consensus rating and higher possible upside, analysts plainly believe Omega Healthcare Investors is more favorable than Medical Properties Trust.

Earnings & Valuation

This table compares Omega Healthcare Investors and Medical Properties Trust”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Omega Healthcare Investors	$1.28 billion	11.50	$572.03 million	$2.80	17.38
Medical Properties Trust	$972.02 million	2.85	-$277.05 million	($0.21)	-22.05

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Omega Healthcare Investors	66.96%	15.76%	8.40%
Medical Properties Trust	-12.59%	-2.70%	-0.84%

Summary

Omega Healthcare Investors beats Medical Properties Trust on 11 of the 16 factors compared between the two stocks.

About Omega Healthcare Investors

Omega Healthcare Investors, Inc. engages in the provision of financing and capital to the long-term healthcare industry with a particular focus on skilled nursing facilities, assisted living facilities, independent living facilities, rehabilitation and acute care facilities, and medical office buildings. The company was founded on March 31, 1992 and is headquartered in Hunt Valley, MD.

About Medical Properties Trust

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.