Essential Properties Realty Trust (NYSE:EPRT) & EPR Properties (NYSE:EPR) Head to Head Review

Essential Properties Realty Trust (NYSE:EPRT) and EPR Properties (NYSE:EPR) are both mid-cap finance companies, but which is the superior business? We will contrast the two companies based on the strength of their profitability, dividends, analyst recommendations, earnings, risk, valuation and institutional ownership.

Insider and Institutional Ownership

97.0% of Essential Properties Realty Trust shares are held by institutional investors. Comparatively, 74.7% of EPR Properties shares are held by institutional investors. 0.8% of Essential Properties Realty Trust shares are held by insiders. Comparatively, 2.3% of EPR Properties shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Dividends

Essential Properties Realty Trust pays an annual dividend of $1.20 per share and has a dividend yield of 4.0%. EPR Properties pays an annual dividend of $3.54 per share and has a dividend yield of 6.2%. Essential Properties Realty Trust pays out 101.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. EPR Properties pays out 174.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Essential Properties Realty Trust has raised its dividend for 6 consecutive years and EPR Properties has raised its dividend for 1 consecutive years.

Volatility & Risk

Essential Properties Realty Trust has a beta of 1.08, indicating that its stock price is 8% more volatile than the S&P 500. Comparatively, EPR Properties has a beta of 1.32, indicating that its stock price is 32% more volatile than the S&P 500.

Profitability

This table compares Essential Properties Realty Trust and EPR Properties’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Essential Properties Realty Trust	44.48%	6.20%	3.78%
EPR Properties	25.28%	7.66%	3.21%

Earnings & Valuation

This table compares Essential Properties Realty Trust and EPR Properties”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Essential Properties Realty Trust	$449.61 million	13.11	$203.00 million	$1.18	25.21
EPR Properties	$698.07 million	6.27	$146.07 million	$2.03	28.33

Essential Properties Realty Trust has higher earnings, but lower revenue than EPR Properties. Essential Properties Realty 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.

Analyst Recommendations

This is a summary of recent recommendations for Essential Properties Realty Trust and EPR Properties, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Essential Properties Realty Trust	0	2	9	0	2.82
EPR Properties	0	5	2	1	2.50

Essential Properties Realty Trust currently has a consensus price target of $35.18, suggesting a potential upside of 18.26%. EPR Properties has a consensus price target of $59.36, suggesting a potential upside of 3.23%. Given Essential Properties Realty Trust’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Essential Properties Realty Trust is more favorable than EPR Properties.

Summary

Essential Properties Realty Trust beats EPR Properties on 10 of the 18 factors compared between the two stocks.

About Essential Properties Realty Trust

Essential Properties Realty Trust, Inc., a real estate company, acquires, owns, and manages single-tenant properties in the United States. The company leases its properties to middle-market companies, such as restaurants, car washes, automotive services, medical and dental services, convenience stores, equipment rental, entertainment, early childhood education, grocery, and health and fitness on a long-term basis. As of December 31, 2021, it had a portfolio of 1, 451 properties. 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 2016 and is headquartered in Princeton, New Jersey.

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.