Medical Properties Trust (NYSE:MPW – Get Free Report) and Apollo Commercial Real Estate Finance (NYSE:ARI – Get Free Report) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, earnings, valuation, analyst recommendations, institutional ownership, profitability and dividends.
Dividends
Medical Properties Trust pays an annual dividend of $0.32 per share and has a dividend yield of 7.0%. Apollo Commercial Real Estate Finance pays an annual dividend of $1.00 per share and has a dividend yield of 11.2%. Medical Properties Trust pays out -11.9% of its earnings in the form of a dividend. Apollo Commercial Real Estate Finance pays out -108.7% 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. Apollo Commercial Real Estate Finance is clearly the better dividend stock, given its higher yield and lower payout ratio.
Analyst Ratings
This is a summary of current recommendations and price targets for Medical Properties Trust and Apollo Commercial Real Estate Finance, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Medical Properties Trust | 1 | 8 | 1 | 0 | 2.00 |
| Apollo Commercial Real Estate Finance | 1 | 4 | 0 | 0 | 1.80 |
Profitability
This table compares Medical Properties Trust and Apollo Commercial Real Estate Finance’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Medical Properties Trust | N/A | -22.26% | -9.06% |
| Apollo Commercial Real Estate Finance | -35.84% | 9.11% | 2.01% |
Volatility & Risk
Medical Properties Trust has a beta of 1.32, indicating that its share price is 32% more volatile than the S&P 500. Comparatively, Apollo Commercial Real Estate Finance has a beta of 1.75, indicating that its share price is 75% more volatile than the S&P 500.
Valuation and Earnings
This table compares Medical Properties Trust and Apollo Commercial Real Estate Finance”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Medical Properties Trust | $722.07 million | 3.79 | -$556.48 million | ($2.69) | -1.70 |
| Apollo Commercial Real Estate Finance | $344.59 million | 3.57 | $58.13 million | ($0.92) | -9.67 |
Apollo Commercial Real Estate Finance has lower revenue, but higher earnings than Medical Properties Trust. Apollo Commercial Real Estate Finance is trading at a lower price-to-earnings ratio than Medical Properties Trust, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
71.8% of Medical Properties Trust shares are held by institutional investors. Comparatively, 54.4% of Apollo Commercial Real Estate Finance shares are held by institutional investors. 1.5% of Medical Properties Trust shares are held by company insiders. Comparatively, 0.7% of Apollo Commercial Real Estate Finance shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Summary
Medical Properties Trust beats Apollo Commercial Real Estate Finance on 9 of the 16 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 Apollo Commercial Real Estate Finance
Apollo Commercial Real Estate Finance, Inc. operates as a real estate investment trust (REIT) that originates, acquires, invests in, and manages commercial first mortgage loans, subordinate financings, and other commercial real estate-related debt investments in the United States, the United Kingdom, and Europe. It is qualified as a REIT under the Internal Revenue Code. As a REIT, it would not be subject to federal income taxes, if the company distributes at least 90% of its REIT taxable income to its stockholders. Apollo Commercial Real Estate Finance, Inc. was incorporated in 2009 and is based in New York, New York.
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