Contrasting Medical Properties Trust (NYSE:MPW) and Seritage Growth Properties (NYSE:SRG)

Medical Properties Trust (NYSE:MPW) and Seritage Growth Properties (NYSE:SRG) are both finance companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, dividends, risk, analyst recommendations, institutional ownership, valuation and earnings.

Insider and Institutional Ownership

71.8% of Medical Properties Trust shares are owned by institutional investors. Comparatively, 78.9% of Seritage Growth Properties shares are owned by institutional investors. 1.3% of Medical Properties Trust shares are owned by insiders. Comparatively, 0.6% of Seritage Growth Properties shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Medical Properties Trust and Seritage Growth Properties’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Medical Properties Trust	-174.35%	-31.14%	-10.91%
Seritage Growth Properties	-953.02%	-17.07%	-9.98%

Earnings & Valuation

This table compares Medical Properties Trust and Seritage Growth Properties”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Medical Properties Trust	$995.55 million	2.55	-$2.41 billion	($2.77)	-1.53
Seritage Growth Properties	$17.62 million	10.58	-$153.54 million	($2.88)	-1.15

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

Risk & Volatility

Medical Properties Trust has a beta of 1.29, suggesting that its stock price is 29% more volatile than the S&P 500. Comparatively, Seritage Growth Properties has a beta of 2.39, suggesting that its stock price is 139% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Medical Properties Trust and Seritage Growth Properties, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Medical Properties Trust	1	4	2	0	2.14
Seritage Growth Properties	0	0	0	0	0.00

Medical Properties Trust currently has a consensus price target of $5.67, suggesting a potential upside of 34.12%. Given Medical Properties Trust’s stronger consensus rating and higher probable upside, analysts clearly believe Medical Properties Trust is more favorable than Seritage Growth Properties.

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 Seritage Growth Properties

Seritage Growth Properties operates as a real estate investment trust. The firm engages in the acquisition, ownership, development, redevelopment, management, and leasing of retail properties throughout the United States. Its property portfolio includes mall, shopping centers and freestanding locations. The company was founded on June 3, 2015 and is headquartered in New York, NY.