Comparing Medical Properties Trust (NYSE:MPT) & Summit Industrial Income REIT (OTCMKTS:SMMCF)

Medical Properties Trust (NYSE:MPT) and Summit Industrial Income REIT (OTCMKTS:SMMCF) are both real estate companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, valuation, institutional ownership, profitability, earnings and dividends.

Institutional & Insider Ownership

71.8% of Medical Properties Trust shares are held by institutional investors. Comparatively, 0.1% of Summit Industrial Income REIT shares are held by institutional investors. 1.8% 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 stock will outperform the market over the long term.

Dividends

Medical Properties Trust pays an annual dividend of $0.36 per share and has a dividend yield of 7.1%. Summit Industrial Income REIT pays an annual dividend of $0.21 per share and has a dividend yield of 1.2%. Medical Properties Trust pays out -78.3% of its earnings in the form of a dividend. Summit Industrial Income REIT pays out 35.9% 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. Medical Properties Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Medical Properties Trust and Summit Industrial Income REIT, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Medical Properties Trust	1	0	0	0	1.00
Summit Industrial Income REIT	0	0	0	0	0.00

Valuation & Earnings

This table compares Medical Properties Trust and Summit Industrial Income REIT”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Medical Properties Trust	$972.02 million	3.18	-$277.05 million	($0.46)	-10.96
Summit Industrial Income REIT	N/A	N/A	N/A	$0.59	29.50

Summit Industrial Income REIT has lower revenue, but higher earnings than Medical Properties Trust. Medical Properties Trust is trading at a lower price-to-earnings ratio than Summit Industrial Income REIT, indicating that it is currently the more affordable of the two stocks.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Medical Properties Trust	-28.50%	-5.87%	-1.85%
Summit Industrial Income REIT	N/A	N/A	N/A

Summary

Medical Properties Trust beats Summit Industrial Income REIT on 6 of the 11 factors compared between the two stocks.

About Medical Properties Trust

Medical Properties Trust, Inc. is a self-advised real estate investment trust formed to capitalize on the changing trends in healthcare delivery by acquiring and developing net-leased healthcare facilities. MPT’s financing model allows hospitals and other healthcare facilities to unlock the value of their underlying real estate in order to fund facility improvements, technology upgrades, staff additions and new construction. Facilities include acute care hospitals, inpatient rehabilitation hospitals, long-term acute care hospitals, and other medical and surgical facilities.

About Summit Industrial Income REIT

Summit Industrial Income REIT is an open-ended mutual fund trust, which engages in growing and managing a portfolio of light industrial properties. Its properties are located in Ontario, Quebec, Alberta, British Columbia, and New Brunswick. The company was founded on November 24, 1998 and is headquartered in Markham, Canada.