MedEquities Realty Trust (NYSE: MRT) is one of 26 publicly-traded companies in the “Healthcare REITs” industry, but how does it weigh in compared to its rivals? We will compare MedEquities Realty Trust to related companies based on the strength of its valuation, earnings, risk, dividends, institutional ownership, analyst recommendations and profitability.

Insider & Institutional Ownership

92.9% of MedEquities Realty Trust shares are held by institutional investors. Comparatively, 84.2% of shares of all “Healthcare REITs” companies are held by institutional investors. 2.5% of MedEquities Realty Trust shares are held by insiders. Comparatively, 2.1% of shares of all “Healthcare REITs” companies are held 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 MedEquities Realty Trust and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
MedEquities Realty Trust 32.68% 5.58% 3.52%
MedEquities Realty Trust Competitors 36.86% 7.30% 3.61%

Valuation & Earnings

This table compares MedEquities Realty Trust and its rivals gross revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
MedEquities Realty Trust $56.96 million $46.67 million 33.51
MedEquities Realty Trust Competitors $788.38 million $482.52 million 40.56

MedEquities Realty Trust’s rivals have higher revenue and earnings than MedEquities Realty Trust. MedEquities Realty Trust is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Dividends

MedEquities Realty Trust pays an annual dividend of $0.84 per share and has a dividend yield of 7.2%. MedEquities Realty Trust pays out 240.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Healthcare REITs” companies pay a dividend yield of 5.0% and pay out 124.4% of their earnings in the form of a dividend.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for MedEquities Realty Trust and its rivals, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
MedEquities Realty Trust 1 1 6 0 2.63
MedEquities Realty Trust Competitors 203 831 676 12 2.29

MedEquities Realty Trust presently has a consensus target price of $13.00, indicating a potential upside of 10.83%. As a group, “Healthcare REITs” companies have a potential downside of 0.04%. Given MedEquities Realty Trust’s stronger consensus rating and higher probable upside, analysts clearly believe MedEquities Realty Trust is more favorable than its rivals.

Summary

MedEquities Realty Trust rivals beat MedEquities Realty Trust on 8 of the 14 factors compared.

MedEquities Realty Trust Company Profile

MedEquities Realty Trust, Inc. is a real estate investment trust (REIT). The Company invests in a diversified mix of healthcare properties and healthcare-related real estate debt investments. The Company invests primarily in real estate across the acute and post-acute spectrum of care. It focuses on investing in various types of healthcare properties, including acute care hospitals; skilled nursing facilities; short-stay surgical and specialty hospitals, which focus on orthopedic, heart and other dedicated surgeries and specialty procedures; dedicated specialty hospitals, such as inpatient rehabilitation facilities, long-term acute care hospitals and facilities providing psychiatric care; physician clinics; diagnostic facilities; outpatient surgery centers, and facilities that support these services, such as medical office buildings. As of September 30, 2016, the Company’s portfolio included 24 healthcare facilities and one healthcare-related debt investment.

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