Medical Properties Trust (NYSE:MPW – Get Free Report) and CubeSmart (NYSE:CUBE – Get Free Report) are both finance companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, dividends, risk and profitability.
Analyst Ratings
This is a summary of current ratings and price targets for Medical Properties Trust and CubeSmart, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Medical Properties Trust | 1 | 7 | 1 | 0 | 2.00 |
| CubeSmart | 1 | 6 | 4 | 0 | 2.27 |
Medical Properties Trust currently has a consensus target price of $5.50, suggesting a potential upside of 27.61%. CubeSmart has a consensus target price of $51.45, suggesting a potential upside of 5.20%. Given Medical Properties Trust’s higher probable upside, analysts clearly believe Medical Properties Trust is more favorable than CubeSmart.
Risk and Volatility
Dividends
Medical Properties Trust pays an annual dividend of $0.32 per share and has a dividend yield of 7.4%. CubeSmart pays an annual dividend of $2.04 per share and has a dividend yield of 4.2%. Medical Properties Trust pays out -7.6% of its earnings in the form of a dividend. CubeSmart pays out 115.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. CubeSmart has increased its dividend for 14 consecutive years. Medical Properties Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.
Institutional and Insider Ownership
71.8% of Medical Properties Trust shares are owned by institutional investors. Comparatively, 97.6% of CubeSmart shares are owned by institutional investors. 1.5% of Medical Properties Trust shares are owned by insiders. Comparatively, 1.7% of CubeSmart shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Profitability
This table compares Medical Properties Trust and CubeSmart’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Medical Properties Trust | N/A | -38.83% | -15.05% |
| CubeSmart | 37.79% | 14.33% | 6.48% |
Earnings & Valuation
This table compares Medical Properties Trust and CubeSmart”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Medical Properties Trust | $871.80 million | 2.97 | -$556.48 million | ($4.22) | -1.02 |
| CubeSmart | $1.05 billion | 10.53 | $410.76 million | $1.77 | 27.63 |
CubeSmart has higher revenue and earnings than Medical Properties Trust. Medical Properties Trust is trading at a lower price-to-earnings ratio than CubeSmart, indicating that it is currently the more affordable of the two stocks.
Summary
CubeSmart beats Medical Properties Trust on 13 of the 17 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 CubeSmart
CubeSmart is a self-administered and self-managed real estate investment trust. The Company's self-storage properties are designed to offer affordable, easily accessible and, in most locations, climate-controlled storage space for residential and commercial customers. According to the 2023 Self-Storage Almanac, CubeSmart is one of the top three owners and operators of self-storage properties in the United States.
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