Analyzing Modiv Industrial (NYSE:MDV) and Medical Properties Trust (NYSE:MPW)

Modiv Industrial (NYSE:MDV) and Medical Properties Trust (NYSE:MPW) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, analyst recommendations, risk, valuation, profitability, institutional ownership and earnings.

Insider & Institutional Ownership

8.2% of Modiv Industrial shares are held by institutional investors. Comparatively, 71.8% of Medical Properties Trust shares are held by institutional investors. 4.6% of Modiv Industrial shares are held by company insiders. Comparatively, 1.5% of Medical Properties Trust shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Modiv Industrial	1.80%	0.37%	0.16%
Medical Properties Trust	N/A	-17.13%	-7.18%

Volatility and Risk

Modiv Industrial has a beta of -0.23, indicating that its stock price is 123% less volatile than the S&P 500. Comparatively, Medical Properties Trust has a beta of 1.27, indicating that its stock price is 27% more volatile than the S&P 500.

Dividends

Modiv Industrial pays an annual dividend of $1.15 per share and has a dividend yield of 7.9%. Medical Properties Trust pays an annual dividend of $0.60 per share and has a dividend yield of 12.2%. Modiv Industrial pays out -244.7% of its earnings in the form of a dividend. Medical Properties Trust pays out -27.0% 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.

Earnings and Valuation

This table compares Modiv Industrial and Medical Properties Trust’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Modiv Industrial	$48.03 million	2.85	-$6.61 million	($0.47)	-30.83
Medical Properties Trust	$792.90 million	3.73	-$556.48 million	($2.22)	-2.22

Modiv Industrial has higher earnings, but lower revenue than Medical Properties Trust. Modiv Industrial 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.

Analyst Recommendations

This is a breakdown of current ratings for Modiv Industrial and Medical Properties Trust, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Modiv Industrial	0	0	1	0	3.00
Medical Properties Trust	2	8	1	0	1.91

Modiv Industrial presently has a consensus target price of $18.00, indicating a potential upside of 24.22%. Medical Properties Trust has a consensus target price of $5.38, indicating a potential upside of 8.92%. Given Modiv Industrial’s stronger consensus rating and higher probable upside, equities analysts plainly believe Modiv Industrial is more favorable than Medical Properties Trust.

Summary

Modiv Industrial beats Medical Properties Trust on 9 of the 15 factors compared between the two stocks.

About Modiv Industrial

Modiv Industrial, Inc. is an internally managed REIT that is focused on single-tenant net-lease industrial manufacturing real estate. The Company actively acquires critical industrial manufacturing properties with long-term leases to tenants that fuel the national economy and strengthen the nation's supply chains.

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.