EPR Properties (NYSE:EPR) & Granite Point Mortgage Trust (NYSE:GPMT) Critical Analysis

Granite Point Mortgage Trust (NYSE:GPMT) and EPR Properties (NYSE:EPR) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, institutional ownership, analyst recommendations, dividends, valuation, earnings and profitability.

Valuation & Earnings

This table compares Granite Point Mortgage Trust and EPR Properties”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Granite Point Mortgage Trust	$57.06 million	2.65	-$63.20 million	($3.65)	-0.82
EPR Properties	$705.67 million	4.81	$173.05 million	$2.31	19.42

EPR Properties has higher revenue and earnings than Granite Point Mortgage Trust. Granite Point Mortgage Trust is trading at a lower price-to-earnings ratio than EPR Properties, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

51.6% of Granite Point Mortgage Trust shares are owned by institutional investors. Comparatively, 74.7% of EPR Properties shares are owned by institutional investors. 2.3% of Granite Point Mortgage Trust shares are owned by company insiders. Comparatively, 2.1% of EPR Properties shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Risk & Volatility

Granite Point Mortgage Trust has a beta of 1.79, meaning that its share price is 79% more volatile than the S&P 500. Comparatively, EPR Properties has a beta of 1.75, meaning that its share price is 75% more volatile than the S&P 500.

Dividends

Granite Point Mortgage Trust pays an annual dividend of $0.20 per share and has a dividend yield of 6.7%. EPR Properties pays an annual dividend of $3.42 per share and has a dividend yield of 7.6%. Granite Point Mortgage Trust pays out -5.5% of its earnings in the form of a dividend. EPR Properties pays out 148.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Granite Point Mortgage Trust and EPR Properties, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Granite Point Mortgage Trust	1	1	2	0	2.25
EPR Properties	2	3	3	1	2.33

Granite Point Mortgage Trust currently has a consensus price target of $5.08, indicating a potential upside of 71.16%. EPR Properties has a consensus price target of $48.31, indicating a potential upside of 7.70%. Given Granite Point Mortgage Trust’s higher probable upside, analysts clearly believe Granite Point Mortgage Trust is more favorable than EPR Properties.

Profitability

This table compares Granite Point Mortgage Trust and EPR Properties’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Granite Point Mortgage Trust	-74.38%	2.45%	0.70%
EPR Properties	28.87%	8.19%	3.52%

Summary

EPR Properties beats Granite Point Mortgage Trust on 13 of the 17 factors compared between the two stocks.

About Granite Point Mortgage Trust

Granite Point Mortgage Trust Inc., a real estate investment trust, originates, invests in, and manages senior floating-rate commercial mortgage loans, and other debt and debt-like commercial real estate investments in the United States. The company provides intermediate-term bridge or transitional financing for various purposes, including acquisitions, recapitalizations, and refinancing, as well as a range of business plans, including lease-up, renovation, repositioning, and repurposing of the commercial property. The company qualifies as a real estate investment trust for federal income tax purposes. It generally would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. The company was founded in 2015 and is headquartered in New York, New York.

About EPR Properties

EPR Properties (NYSE:EPR) is the leading diversified experiential net lease real estate investment trust (REIT), specializing in select enduring experiential properties in the real estate industry. We focus on real estate venues that create value by facilitating out of home leisure and recreation experiences where consumers choose to spend their discretionary time and money. We have total assets of approximately $5.7 billion (after accumulated depreciation of approximately $1.4 billion) across 44 states. We adhere to rigorous underwriting and investing criteria centered on key industry, property and tenant level cash flow standards. We believe our focused approach provides a competitive advantage and the potential for stable and attractive returns.