EPR Properties (NYSE:EPR) and QTS Realty Trust (NYSE:QTS) are both mid-cap finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, earnings, risk, dividends, institutional ownership and profitability.
Institutional and Insider Ownership
83.1% of EPR Properties shares are held by institutional investors. 1.3% of EPR Properties shares are held by company insiders. Comparatively, 13.4% of QTS Realty Trust shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
EPR Properties has a beta of 0.57, meaning that its stock price is 43% less volatile than the S&P 500. Comparatively, QTS Realty Trust has a beta of 0.61, meaning that its stock price is 39% less volatile than the S&P 500.
This is a breakdown of recent ratings for EPR Properties and QTS Realty Trust, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|QTS Realty Trust||0||1||6||0||2.86|
EPR Properties presently has a consensus price target of $79.40, suggesting a potential upside of 4.65%. QTS Realty Trust has a consensus price target of $49.17, suggesting a potential upside of 0.32%. Given EPR Properties’ higher probable upside, analysts clearly believe EPR Properties is more favorable than QTS Realty Trust.
EPR Properties pays an annual dividend of $4.50 per share and has a dividend yield of 5.9%. QTS Realty Trust pays an annual dividend of $1.76 per share and has a dividend yield of 3.6%. EPR Properties pays out 73.8% of its earnings in the form of a dividend. QTS Realty Trust pays out 67.7% 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. EPR Properties has increased its dividend for 8 consecutive years and QTS Realty Trust has increased its dividend for 4 consecutive years. EPR Properties is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This table compares EPR Properties and QTS Realty Trust’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|QTS Realty Trust||6.19%||2.95%||0.97%|
Earnings & Valuation
This table compares EPR Properties and QTS Realty Trust’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|EPR Properties||$700.73 million||8.40||$266.98 million||$6.10||12.44|
|QTS Realty Trust||$450.52 million||6.02||-$4.46 million||$2.60||18.85|
EPR Properties has higher revenue and earnings than QTS Realty Trust. EPR Properties is trading at a lower price-to-earnings ratio than QTS Realty Trust, indicating that it is currently the more affordable of the two stocks.
EPR Properties beats QTS Realty Trust on 11 of the 17 factors compared between the two stocks.
About EPR Properties
EPR Properties is a specialty real estate investment trust (REIT) that invests in properties in select market segments which require unique industry knowledge, while offering the potential for stable and attractive returns. Our total investments exceed $6.7 billion and our primary investment segments are Entertainment, Recreation and Education. We adhere to rigorous underwriting and investing criteria centered on key industry and property level cash flow standards. We believe our focused niche approach provides a competitive advantage, and the potential for higher growth and better yields.
About QTS Realty Trust
QTS Realty Trust, Inc. (NYSE: QTS) is a leading provider of data center solutions across a diverse footprint spanning more than 6 million square feet of owned mega scale data center space throughout North America. Through its software-defined technology platform, QTS is able to deliver secure, compliant infrastructure solutions, robust connectivity and premium customer service to leading hyperscale technology companies, enterprises, and government entities. QTS owns, operates or manages 25 data centers and supports more than 1,100 Core customers primarily in North America.
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