Medical Properties Trust (NYSE:MPW – Get Free Report) and Elme Communities (NYSE:ELME – Get Free Report) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, profitability, dividends, valuation, analyst recommendations, risk and earnings.
Insider & Institutional Ownership
71.8% of Medical Properties Trust shares are held by institutional investors. Comparatively, 87.9% of Elme Communities shares are held by institutional investors. 1.5% of Medical Properties Trust shares are held by insiders. Comparatively, 1.2% of Elme Communities shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Dividends
Medical Properties Trust pays an annual dividend of $0.32 per share and has a dividend yield of 6.5%. Elme Communities pays an annual dividend of $0.72 per share and has a dividend yield of 4.1%. Medical Properties Trust pays out -7.6% of its earnings in the form of a dividend. Elme Communities pays out -480.0% 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.
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Medical Properties Trust | $722.07 million | 4.08 | -$556.48 million | ($4.22) | -1.16 |
| Elme Communities | $227.91 million | 6.82 | -$52.98 million | ($0.15) | -117.73 |
Elme Communities has lower revenue, but higher earnings than Medical Properties Trust. Elme Communities is trading at a lower price-to-earnings ratio than Medical Properties Trust, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Medical Properties Trust has a beta of 1.32, suggesting that its share price is 32% more volatile than the S&P 500. Comparatively, Elme Communities has a beta of 0.89, suggesting that its share price is 11% less volatile than the S&P 500.
Profitability
This table compares Medical Properties Trust and Elme Communities’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Medical Properties Trust | N/A | -22.26% | -9.06% |
| Elme Communities | -5.51% | -1.17% | -0.70% |
Analyst Recommendations
This is a summary of recent recommendations and price targets for Medical Properties Trust and Elme Communities, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Medical Properties Trust | 1 | 8 | 1 | 0 | 2.00 |
| Elme Communities | 0 | 3 | 1 | 0 | 2.25 |
Medical Properties Trust presently has a consensus price target of $5.38, suggesting a potential upside of 9.47%. Elme Communities has a consensus price target of $17.33, suggesting a potential downside of 1.85%. Given Medical Properties Trust’s higher probable upside, equities analysts clearly believe Medical Properties Trust is more favorable than Elme Communities.
Summary
Elme Communities beats Medical Properties Trust on 8 of the 15 factors compared between the two stocks.
About Medical Properties Trust
Medical Properties Trust, Inc. is a self-advised real estate investment trust formed in 2003 to acquire and develop net-leased hospital facilities. From its inception in Birmingham, Alabama, the Company has grown to become one of the world's largest owners of hospital real estate with 441 facilities and approximately 44,000 licensed beds as of September 30, 2023. Since the end of the third quarter, the Company has sold four facilities and now owns approximately 43,000 licensed beds in nine countries across three continents. MPT's financing model facilitates acquisitions and recapitalizations and allows operators of hospitals to unlock the value of their real estate assets to fund facility improvements, technology upgrades and other investments in operations.
About Elme Communities
Elme Communities is committed to elevating what home can be for middle-income renters by providing a higher level of quality, service, and experience. The Company is a multifamily real estate investment trust that owns and operates approximately 9,400 apartment homes in the Washington, DC metro and the Atlanta metro regions, and owns approximately 300,000 square feet of commercial space. Focused on providing quality, affordable homes to a deep, solid, and underserved base of mid-market demand, Elme Communities is building long-term value for shareholders.
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