Medical Properties Trust (NYSE:MPT – Get Free Report) and Omega Healthcare Investors (NYSE:OHI – Get Free Report) are both real estate companies, but which is the superior stock? We will contrast the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, valuation, earnings, profitability and risk.
Volatility & Risk
Medical Properties Trust has a beta of 1.42, suggesting that its stock price is 42% more volatile than the S&P 500. Comparatively, Omega Healthcare Investors has a beta of 0.58, suggesting that its stock price is 42% less volatile than the S&P 500.
Analyst Recommendations
This is a summary of recent ratings and recommmendations for Medical Properties Trust and Omega Healthcare Investors, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Medical Properties Trust | 0 | 2 | 0 | 0 | 2.00 |
| Omega Healthcare Investors | 2 | 8 | 5 | 0 | 2.20 |
Dividends
Medical Properties Trust pays an annual dividend of $0.36 per share and has a dividend yield of 7.8%. Omega Healthcare Investors pays an annual dividend of $2.68 per share and has a dividend yield of 5.3%. Medical Properties Trust pays out -171.4% of its earnings in the form of a dividend. Omega Healthcare Investors pays out 95.7% 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 is clearly the better dividend stock, given its higher yield and lower payout ratio.
Valuation and Earnings
This table compares Medical Properties Trust and Omega Healthcare Investors”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Medical Properties Trust | $1.00 billion | 2.76 | -$277.05 million | ($0.21) | -22.00 |
| Omega Healthcare Investors | $1.19 billion | 12.71 | $572.03 million | $2.80 | 18.14 |
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 Medical Properties Trust and Omega Healthcare Investors’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Medical Properties Trust | -12.59% | -2.70% | -0.84% |
| Omega Healthcare Investors | 66.96% | 15.76% | 8.40% |
Institutional & Insider Ownership
71.8% of Medical Properties Trust shares are held by institutional investors. Comparatively, 65.2% of Omega Healthcare Investors shares are held by institutional investors. 1.8% of Medical Properties Trust shares are held by insiders. Comparatively, 1.7% of Omega Healthcare Investors shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Summary
Omega Healthcare Investors beats Medical Properties Trust on 10 of the 16 factors compared between the two stocks.
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.
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.
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