Financial Analysis: Summit Industrial Income REIT (OTCMKTS:SMMCF) & Medical Properties Trust (NYSE:MPT)

Summit Industrial Income REIT (OTCMKTS:SMMCF) and Medical Properties Trust (NYSE:MPT) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, analyst recommendations, earnings, risk, institutional ownership, profitability and dividends.

Analyst Ratings

This is a summary of current ratings and recommmendations for Summit Industrial Income REIT and Medical Properties Trust, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Summit Industrial Income REIT	0	0	0	0	0.00
Medical Properties Trust	1	0	0	0	1.00

Profitability

This table compares Summit Industrial Income REIT and Medical Properties Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Summit Industrial Income REIT	N/A	N/A	N/A
Medical Properties Trust	-12.59%	-2.70%	-0.84%

Dividends

Summit Industrial Income REIT pays an annual dividend of $0.21 per share and has a dividend yield of 1.2%. Medical Properties Trust pays an annual dividend of $0.36 per share and has a dividend yield of 6.9%. Summit Industrial Income REIT pays out 35.9% of its earnings in the form of a dividend. Medical Properties Trust pays out -171.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Medical Properties Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.

Insider & Institutional Ownership

0.1% of Summit Industrial Income REIT shares are owned by institutional investors. Comparatively, 71.8% of Medical Properties Trust shares are owned by institutional investors. 1.8% of Medical Properties Trust shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Summit Industrial Income REIT and Medical Properties Trust”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Summit Industrial Income REIT	N/A	N/A	N/A	$0.59	29.50
Medical Properties Trust	$972.02 million	3.19	-$277.05 million	($0.21)	-24.67

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

Summary

Medical Properties Trust beats Summit Industrial Income REIT on 6 of the 11 factors compared between the two stocks.

About Summit Industrial Income REIT

Summit Industrial Income REIT is an open-ended mutual fund trust, which engages in growing and managing a portfolio of light industrial properties. Its properties are located in Ontario, Quebec, Alberta, British Columbia, and New Brunswick. The company was founded on November 24, 1998 and is headquartered in Markham, Canada.

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.