Medical Properties Trust (NYSE:MPW – Get Free Report) and Kilroy Realty (NYSE:KRC – Get Free Report) are both mid-cap finance companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, valuation, profitability, earnings, dividends, analyst recommendations and institutional ownership.
Volatility & Risk
Medical Properties Trust has a beta of 1.44, suggesting that its stock price is 44% more volatile than the S&P 500. Comparatively, Kilroy Realty has a beta of 1.07, suggesting that its stock price is 7% more volatile than the S&P 500.
Valuation & Earnings
This table compares Medical Properties Trust and Kilroy Realty”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Medical Properties Trust | $995.55 million | 3.02 | -$2.41 billion | ($1.18) | -4.24 |
| Kilroy Realty | $1.14 billion | 4.06 | $210.97 million | $2.71 | 14.37 |
Kilroy Realty has higher revenue and earnings than Medical Properties Trust. Medical Properties Trust is trading at a lower price-to-earnings ratio than Kilroy Realty, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of recent ratings and target prices for Medical Properties Trust and Kilroy Realty, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Medical Properties Trust | 2 | 3 | 1 | 0 | 1.83 |
| Kilroy Realty | 1 | 11 | 1 | 0 | 2.00 |
Medical Properties Trust presently has a consensus target price of $5.63, indicating a potential upside of 12.39%. Kilroy Realty has a consensus target price of $42.08, indicating a potential upside of 8.03%. Given Medical Properties Trust’s higher possible upside, analysts plainly believe Medical Properties Trust is more favorable than Kilroy Realty.
Profitability
This table compares Medical Properties Trust and Kilroy Realty’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Medical Properties Trust | -75.76% | -14.82% | -4.78% |
| Kilroy Realty | 28.68% | 5.75% | 2.96% |
Dividends
Medical Properties Trust pays an annual dividend of $0.36 per share and has a dividend yield of 7.2%. Kilroy Realty pays an annual dividend of $2.16 per share and has a dividend yield of 5.5%. Medical Properties Trust pays out -30.5% of its earnings in the form of a dividend. Kilroy Realty pays out 79.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Medical Properties Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.
Institutional & Insider Ownership
71.8% of Medical Properties Trust shares are held by institutional investors. Comparatively, 94.2% of Kilroy Realty shares are held by institutional investors. 1.3% of Medical Properties Trust shares are held by company insiders. Comparatively, 1.6% of Kilroy Realty shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Summary
Kilroy Realty beats Medical Properties Trust on 11 of the 15 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 Kilroy Realty
Kilroy Realty Corporation (NYSE: KRC, the company, Kilroy) is a leading U.S. landlord and developer, with operations in San Diego, Greater Los Angeles, the San Francisco Bay Area, Greater Seattle and Austin. The company has earned global recognition for sustainability, building operations, innovation and design. As a pioneer and innovator in the creation of a more sustainable real estate industry, the company's approach to modern business environments helps drive creativity and productivity for some of the world's leading technology, entertainment, life science and business services companies. The company is a publicly traded real estate investment trust (REIT) and member of the S&P MidCap 400 Index with more than seven decades of experience developing, acquiring and managing office, life science and mixed-use projects. As of December 31, 2023, Kilroy's stabilized portfolio totaled approximately 17.0 million square feet of primarily office and life science space that was 85.0% occupied and 86.4% leased. The company also had approximately 1,000 residential units in Hollywood and San Diego, which had a quarterly average occupancy of 92.5%. In addition, the company had two in-process life science redevelopment projects totaling approximately 100,000 square feet with total estimated redevelopment costs of $80.0 million and one approximately 875,000 square foot in-process development project with a total estimated investment of $1.0 billion.
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