Head to Head Comparison: Monmouth Real Estate Investment Corporation (MNR) vs. EPR Properties (EPR)

Monmouth Real Estate Investment Corporation (NYSE: MNR) and EPR Properties (NYSE:EPR) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, dividends, valuation, profitability, institutional ownership, risk and analyst recommendations.

Risk & Volatility

Monmouth Real Estate Investment Corporation has a beta of 0.5, indicating that its share price is 50% less volatile than the S&P 500. Comparatively, EPR Properties has a beta of 0.59, indicating that its share price is 41% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Monmouth Real Estate Investment Corporation and EPR Properties, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Monmouth Real Estate Investment Corporation 0 1 3 0 2.75
EPR Properties 0 2 2 0 2.50

Monmouth Real Estate Investment Corporation currently has a consensus target price of $16.75, indicating a potential upside of 1.52%. EPR Properties has a consensus target price of $78.80, indicating a potential upside of 12.96%. Given EPR Properties’ higher probable upside, analysts plainly believe EPR Properties is more favorable than Monmouth Real Estate Investment Corporation.

Dividends

Monmouth Real Estate Investment Corporation pays an annual dividend of $0.64 per share and has a dividend yield of 3.9%. EPR Properties pays an annual dividend of $4.08 per share and has a dividend yield of 5.8%. Monmouth Real Estate Investment Corporation pays out 213.3% 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 120.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Monmouth Real Estate Investment Corporation has increased its dividend for 6 consecutive years and EPR Properties has increased its dividend for 2 consecutive years. EPR Properties is clearly the better dividend stock, given its higher yield and lower payout ratio.

Institutional & Insider Ownership

60.6% of Monmouth Real Estate Investment Corporation shares are owned by institutional investors. Comparatively, 85.1% of EPR Properties shares are owned by institutional investors. 5.3% of Monmouth Real Estate Investment Corporation shares are owned by company insiders. Comparatively, 1.5% of EPR Properties shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Monmouth Real Estate Investment Corporation and EPR Properties’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Monmouth Real Estate Investment Corporation $108.67 million 11.29 $82.64 million $0.30 55.00
EPR Properties $526.01 million 9.77 $461.10 million $3.40 20.52

EPR Properties has higher revenue and earnings than Monmouth Real Estate Investment Corporation. EPR Properties is trading at a lower price-to-earnings ratio than Monmouth Real Estate Investment Corporation, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Monmouth Real Estate Investment Corporation and EPR Properties’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Monmouth Real Estate Investment Corporation 32.02% 7.91% 2.69%
EPR Properties 46.90% 10.51% 4.89%

Summary

EPR Properties beats Monmouth Real Estate Investment Corporation on 11 of the 17 factors compared between the two stocks.

Monmouth Real Estate Investment Corporation Company Profile

Monmouth Real Estate Investment Corporation is a real estate investment trust (REIT). The Company’s primary business is the ownership of real estate. Its investment focus is to own single tenant, industrial buildings and leased to investment-grade tenants or their subsidiaries on long-term net leases. In addition, the Company owns a portfolio of REIT investment securities. Its assets are situated near airports, transportation hubs and manufacturing plants. The Company’s featured properties include ULTA Cosmetics, Milwaukee Tool, Beam Suntory, FedEx Supply Chain Services, Coca-Cola, Best Buy, International Paper, Home Depot, FedEx Ground, Actavis, Anheuser-Busch, United Technologies, Kellogg’s, Siemens, National Oilwell and Cardinal Health. The Company’s property portfolio consists of approximately 107 properties located in over 30 states, containing a total of approximately 18.6 million rentable square feet.

EPR Properties Company Profile

EPR Properties is a specialty real estate investment trust. The Company’s investment portfolio includes primarily entertainment, education and recreation properties. The Company’s segments include Entertainment, Education, Recreation and Other. The Entertainment segment consists of investments in megaplex theatres, entertainment retail centers, family entertainment centers and other retail parcels. The Education segment consists of investments in public charter schools, early education centers and K-12 private schools. The Recreation segment consists of investments in ski areas, waterparks, golf entertainment complexes and other recreation. The Other segment consists primarily of land under ground lease, property under development and land held for development. As of December 31, 2016, the Company’s owned real estate portfolio of megaplex theatres consisted of approximately 10.6 million square feet.

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