Head to Head Comparison: Medical Properties Trust (MPW) versus Community Healthcare Trust (NYSE:CHCT)
Medical Properties Trust (NYSE: MPW) and Community Healthcare Trust (NYSE:CHCT) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, valuation, earnings, risk, dividends, analyst recommendations and profitabiliy.
Medical Properties Trust pays an annual dividend of $0.96 per share and has a dividend yield of 7.5%. Community Healthcare Trust pays an annual dividend of $1.56 per share and has a dividend yield of 6.3%. Medical Properties Trust pays out 114.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Community Healthcare Trust pays out 577.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Community Healthcare Trust has raised its dividend for 3 consecutive years. Medical Properties Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.
Institutional & Insider Ownership
78.5% of Medical Properties Trust shares are held by institutional investors. Comparatively, 59.3% of Community Healthcare Trust shares are held by institutional investors. 1.0% of Medical Properties Trust shares are held by company insiders. Comparatively, 5.5% of Community Healthcare Trust shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Valuation and Earnings
This table compares Medical Properties Trust and Community Healthcare Trust’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Medical Properties Trust||$568.13 million||8.16||$468.31 million||$0.84||15.15|
|Community Healthcare Trust||$28.04 million||11.12||$18.58 million||$0.27||91.00|
Medical Properties Trust has higher revenue and earnings than Community Healthcare Trust. Medical Properties Trust is trading at a lower price-to-earnings ratio than Community Healthcare Trust, indicating that it is currently the more affordable of the two stocks.
This is a summary of recent recommendations for Medical Properties Trust and Community Healthcare Trust, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Medical Properties Trust||2||4||6||0||2.33|
|Community Healthcare Trust||0||0||1||0||3.00|
Medical Properties Trust currently has a consensus target price of $14.11, suggesting a potential upside of 10.85%. Community Healthcare Trust has a consensus target price of $26.50, suggesting a potential upside of 7.86%. Given Medical Properties Trust’s higher probable upside, equities research analysts clearly believe Medical Properties Trust is more favorable than Community Healthcare Trust.
This table compares Medical Properties Trust and Community Healthcare Trust’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Medical Properties Trust||41.79%||7.94%||3.85%|
|Community Healthcare Trust||12.55%||1.80%||1.49%|
Volatility & Risk
Medical Properties Trust has a beta of 0.89, meaning that its stock price is 11% less volatile than the S&P 500. Comparatively, Community Healthcare Trust has a beta of 1.04, meaning that its stock price is 4% more volatile than the S&P 500.
Medical Properties Trust beats Community Healthcare Trust on 11 of the 17 factors compared between the two stocks.
Medical Properties Trust Company Profile
Medical Properties Trust, Inc. is a real estate investment trust (REIT). The Company focuses on investing in and owning net-leased healthcare facilities across the United States and selectively in foreign jurisdictions. The Company’s segment is its investments in healthcare real estate, including mortgage and other loans, as well as any equity investments in its tenants. The Company conducts its operations through MPT Operating Partnership, L.P. The Company acquires and develops healthcare facilities, and leases the facilities to healthcare operating companies under long-term net leases. The Company makes mortgage loans to healthcare operators collateralized by their real estate assets. As of February 24, 2017, the Company’s portfolio consisted of 232 properties, including 215 facilities (of the 220 facilities that it owns) were leased to 30 tenants, five were under development, and the remaining assets were in the form of mortgage loans to four operators.
Community Healthcare Trust Company Profile
Community Healthcare Trust Incorporated is an integrated healthcare real estate company. The Company owns and acquires, or finances, real estate properties that are leased to hospitals, doctors, healthcare systems or other healthcare service providers in non-urban markets. It has investments in healthcare real estate, including mortgage and other loans. The Company’s medical office buildings are located in areas, such as, Florida, Georgia, Illinois, Kentucky, Ohio and Texas. Its physician clinics are located in Alabama, Florida, Kansas, Pennsylvania and Wisconsin. Its surgical centers and hospitals are located in areas, such as Louisiana, Michigan and Arizona. Its behavioral facilities are located in Indiana and Illinois. Its specialty centers are located in Texas, Colorado and Alabama, among others. As of December 31, 2016, the Company had interests in 57 real estate properties and one mortgage note, located in 22 states, totaling over 1.33 million square feet in the aggregate.
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