Critical Survey: Medical Properties Trust (NYSE:MPT) vs. Primary Health Properties (OTCMKTS:PHPRF)

Primary Health Properties (OTCMKTS:PHPRF) and Medical Properties Trust (NYSE:MPT) are both real estate companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, earnings, analyst recommendations, institutional ownership, profitability, dividends and valuation.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Primary Health Properties	N/A	N/A	N/A
Medical Properties Trust	-2.96%	-0.66%	-0.20%

Analyst Recommendations

This is a summary of recent recommendations for Primary Health Properties and Medical Properties Trust, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Primary Health Properties	0	0	0	0	0.00
Medical Properties Trust	1	1	0	0	1.50

Medical Properties Trust has a consensus target price of $4.50, indicating a potential upside of 10.02%. Given Medical Properties Trust’s stronger consensus rating and higher probable upside, analysts clearly believe Medical Properties Trust is more favorable than Primary Health Properties.

Valuation & Earnings

This table compares Primary Health Properties and Medical Properties Trust”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Primary Health Properties	N/A	N/A	N/A	N/A	N/A
Medical Properties Trust	$972.02 million	2.51	-$277.05 million	($0.06)	-68.17

Primary Health Properties has higher earnings, but lower revenue than Medical Properties Trust.

Insider & Institutional Ownership

71.8% of Medical Properties Trust shares are owned by institutional investors. 1.8% of Medical Properties Trust shares are owned by 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.

Summary

Medical Properties Trust beats Primary Health Properties on 5 of the 8 factors compared between the two stocks.

About Primary Health Properties

Primary Health Properties (PHP) is the leading investor in modern healthcare properties in the UK & Ireland. PHP is a UK based Real Estate Investment Trust (REIT) with a clear objective to create progressive returns to shareholders through a combination of earnings growth and capital appreciation. PHP achieve this by investing in healthcare real estate let on long-term leases, backed by a secure underlying covenant funded mostly by government bodies. The Group’s portfolio comprises over 480 primary healthcare facilities, both completed and committed, the majority of which are GP surgeries, with other properties let to NHS organisations, pharmacies and dentists.

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.