Summit Industrial Income REIT (OTCMKTS:SMMCF) & Medical Properties Trust (NYSE:MPT) Critical Comparison

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

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Medical Properties Trust	$972.02 million	3.29	-$277.05 million	($0.46)	-11.35
Summit Industrial Income REIT	N/A	N/A	N/A	$0.59	29.50

Summit Industrial Income REIT has lower revenue, but higher earnings 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.

Dividends

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 an annual dividend of $0.21 per share and has a dividend yield of 1.2%. Medical Properties Trust pays out -78.3% of its earnings in the form of a dividend. Summit Industrial Income REIT pays out 35.9% 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.

Institutional & Insider Ownership

71.8% of Medical Properties Trust shares are owned by institutional investors. Comparatively, 0.1% of Summit Industrial Income REIT shares are owned by institutional investors. 1.3% of Medical Properties Trust shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Medical Properties Trust	-28.50%	-5.87%	-1.85%
Summit Industrial Income REIT	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Medical Properties Trust and Summit Industrial Income REIT, as reported by MarketBeat.com.

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

Summary

Medical Properties Trust beats Summit Industrial Income REIT on 6 of the 11 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 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.