Contrast STORE Capital (NYSE:STOR) and Medical Properties Trust (NYSE:MPW)



STORE Capital (NYSE:STOR – Get Rating) and Medical Properties Trust (NYSE:MPW – Get Rating) are both finance companies, but which company is better? We’ll compare the two companies based on earnings strength, institutional ownership, profitability, dividends, analyst recommendations, risk and valuation.

Dividends

STORE Capital pays an annual dividend of $1.54 per share and has a dividend yield of 5.2%. Medical Properties Trust pays an annual dividend of $1.16 per share and has a dividend yield of 6.2%. STORE Capital pays 154.0% of its earnings as dividends, suggesting that it may not have enough earnings to cover its dividend payment in the future. Medical Properties Trust pays out 105.5% of its profits as dividends, suggesting it may not have enough profits to cover its dividend payment in the future. STORE Capital has increased its dividend for 7 consecutive years and Medical Properties Trust has increased its dividend for 8 consecutive years. Medical Properties Trust is clearly the best dividend stock, given its higher yield and longer track record of dividend growth.

Risk and Volatility

STORE Capital has a beta of 1.23, meaning its stock price is 23% more volatile than the S&P 500. In contrast, Medical Properties Trust has a beta of 0.58, meaning its stock price is 42 % less volatile than the S&P 500.

Benefits and evaluation

This table compares the revenue, earnings per share and valuation of STORE Capital and Medical Properties Trust.

Gross revenue Price/sales ratio Net revenue Earnings per share Price/earnings ratio
STORE Capital $782.66 million 10.62 $268.35 million $1.00 29.72
Medical Properties Trust $1.54 billion 7.24 $656.02 million $1.10 17.05

Medical Properties Trust has higher revenue and profit than STORE Capital. Medical Properties Trust trades at a lower price-to-earnings ratio than STORE Capital, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares the net margins, return on equity and return on assets of STORE Capital and Medical Properties Trust.

Net margins Return on equity return on assets
STORE Capital 34.29% 5.08% 2.76%
Medical Properties Trust 42.47% 7.83% 3.33%

Analyst Notes

This is a summary of recent ratings and target prices for STORE Capital and Medical Properties Trust, as provided by MarketBeat.

Sales Ratings Hold odds Buy reviews Strong buy odds Rating
STORE Capital 1 5 1 0 2.00
Medical Properties Trust 0 4 3 1 2.63

STORE Capital currently has a consensus price target of $35.00, indicating a potential upside of 17.77%. Medical Properties Trust has a consensus price target of $23.67, indicating a potential upside of 26.15%. Given Medical Properties Trust’s higher consensus rating and higher possible upside, analysts clearly believe that Medical Properties Trust is more favorable than STORE Capital.

Institutional and insider ownership

84.6% of STORE Capital shares are held by institutional investors. By comparison, 80.8% of shares in Medical Properties Trust are held by institutional investors. 0.9% of STORE Capital shares are held by insiders. By comparison, 1.0% of the shares of Medical Properties Trust are held by insiders. Strong institutional ownership indicates that hedge funds, large money managers, and endowments believe a company is poised for long-term growth.

Summary

Medical Properties Trust beat STORE Capital on 14 out of 18 factors compared between the two stocks.

About STORE Capital (Get a rating)

STORE Capital Corporation is an internally managed net leasehold real estate investment trust, or REIT, that is the leader in the acquisition, investment and management of single-tenant operating real estate, which is its target market and l inspiration from his name. STORE Capital is one of the largest and fastest growing net leasehold REITs with a large and well-diversified portfolio of investments in more than 2,500 real estate locations across the United States, which are for most profit centers.

About Medical Properties Trust (Get a rating)

Medical Properties Trust LogoMedical Properties Trust, Inc. is a self-managed real estate investment trust established in 2003 to acquire and develop net-lease hospital facilities. Since its inception in Birmingham, Alabama, the company has grown to become one of the largest hospital owners in the world with 431 facilities and approximately 43,000 licensed beds in nine countries and four continents on a pro forma basis. . MPT’s financing model facilitates acquisitions and recapitalizations and allows hospital operators to unlock the value of their real estate assets to fund facility improvements, technology upgrades and other operations investments.



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