Reviewing Medical Properties Trust (NYSE:MPW) & Net Lease Office Properties (NYSE:NLOP)

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

Dividends

Net Lease Office Properties pays an annual dividend of $0.34 per share and has a dividend yield of 1.1%. Medical Properties Trust pays an annual dividend of $0.32 per share and has a dividend yield of 7.7%. Medical Properties Trust pays out -7.6% of its earnings in the form of a dividend.

Insider & Institutional Ownership

58.3% of Net Lease Office Properties shares are owned by institutional investors. Comparatively, 71.8% of Medical Properties Trust shares are owned by institutional investors. 1.5% of Medical Properties Trust shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Net Lease Office Properties and Medical Properties Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Net Lease Office Properties	-122.90%	-30.16%	-17.58%
Medical Properties Trust	N/A	-38.83%	-15.05%

Analyst Recommendations

This is a summary of recent recommendations and price targets for Net Lease Office Properties and Medical Properties Trust, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Net Lease Office Properties	0	0	1	0	3.00
Medical Properties Trust	0	7	1	0	2.13

Net Lease Office Properties currently has a consensus price target of $46.00, indicating a potential upside of 48.87%. Medical Properties Trust has a consensus price target of $4.92, indicating a potential upside of 18.47%. Given Net Lease Office Properties’ stronger consensus rating and higher possible upside, analysts clearly believe Net Lease Office Properties is more favorable than Medical Properties Trust.

Valuation and Earnings

This table compares Net Lease Office Properties and Medical Properties Trust”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Net Lease Office Properties	$160.91 million	2.84	-$131.75 million	N/A	N/A
Medical Properties Trust	$641.32 million	3.89	-$556.48 million	($4.22)	-0.98

Net Lease Office Properties has higher earnings, but lower revenue than Medical Properties Trust.

Summary

Medical Properties Trust beats Net Lease Office Properties on 8 of the 12 factors compared between the two stocks.

About Net Lease Office Properties

Net Lease Office Properties (NYSE: NLOP) is a publicly traded real estate investment trust with a portfolio of 59 high-quality office properties, totaling approximately 8.7 million leasable square feet primarily leased to corporate tenants on a single-tenant net lease basis. The vast majority of the office properties owned by NLOP are located in the U.S., with the balance in Europe. The portfolio consists of 62 corporate tenants operating in a variety of industries, generating annualized based rent (ABR) of approximately $145 million. NLOP's business plan is to focus on realizing value for its shareholders primarily through strategic asset management and disposition of its property portfolio over time. Given WPC's extensive knowledge of the portfolio, NLOP is externally managed and advised by wholly owned affiliates of WPC to successfully execute on its business strategy. Over the course of its 50-year history, WPC has developed significant expertise in the single-tenant office real estate sector, including the operation, leasing, acquisition and development of assets through many market cycles, and has a proven track record of execution.

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.