EPR Properties (NYSE:EPR) and Granite Point Mortgage Trust (NYSE:GPMT) Head-To-Head Review

EPR Properties (NYSE:EPR) and Granite Point Mortgage Trust (NYSE:GPMT) are both finance companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, dividends, risk, institutional ownership, valuation, profitability and analyst recommendations.

Earnings & Valuation

This table compares EPR Properties and Granite Point Mortgage Trust”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
EPR Properties	$705.67 million	4.79	$173.05 million	$2.31	19.32
Granite Point Mortgage Trust	$263.73 million	0.59	-$63.20 million	($3.65)	-0.84

EPR Properties has higher revenue and earnings than Granite Point Mortgage Trust. Granite Point Mortgage Trust is trading at a lower price-to-earnings ratio than EPR Properties, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

74.7% of EPR Properties shares are owned by institutional investors. Comparatively, 51.6% of Granite Point Mortgage Trust shares are owned by institutional investors. 2.1% of EPR Properties shares are owned by company insiders. Comparatively, 2.3% of Granite Point Mortgage Trust shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Dividends

EPR Properties pays an annual dividend of $3.42 per share and has a dividend yield of 7.7%. Granite Point Mortgage Trust pays an annual dividend of $0.20 per share and has a dividend yield of 6.5%. EPR Properties pays out 148.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Granite Point Mortgage Trust pays out -5.5% of its earnings in the form of a dividend.

Analyst Recommendations

This is a summary of recent ratings and price targets for EPR Properties and Granite Point Mortgage Trust, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
EPR Properties	2	3	3	1	2.33
Granite Point Mortgage Trust	1	1	2	0	2.25

EPR Properties presently has a consensus price target of $48.31, suggesting a potential upside of 8.28%. Granite Point Mortgage Trust has a consensus price target of $5.08, suggesting a potential upside of 65.04%. Given Granite Point Mortgage Trust’s higher probable upside, analysts plainly believe Granite Point Mortgage Trust is more favorable than EPR Properties.

Profitability

This table compares EPR Properties and Granite Point Mortgage Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
EPR Properties	28.87%	8.22%	3.52%
Granite Point Mortgage Trust	-74.38%	2.45%	0.70%

Risk and Volatility

EPR Properties has a beta of 1.76, suggesting that its share price is 76% more volatile than the S&P 500. Comparatively, Granite Point Mortgage Trust has a beta of 1.79, suggesting that its share price is 79% more volatile than the S&P 500.

Summary

EPR Properties beats Granite Point Mortgage Trust on 13 of the 17 factors compared between the two stocks.

About EPR Properties

EPR Properties (NYSE:EPR) is the leading diversified experiential net lease real estate investment trust (REIT), specializing in select enduring experiential properties in the real estate industry. We focus on real estate venues that create value by facilitating out of home leisure and recreation experiences where consumers choose to spend their discretionary time and money. We have total assets of approximately $5.7 billion (after accumulated depreciation of approximately $1.4 billion) across 44 states. We adhere to rigorous underwriting and investing criteria centered on key industry, property and tenant level cash flow standards. We believe our focused approach provides a competitive advantage and the potential for stable and attractive returns.

About Granite Point Mortgage Trust

Granite Point Mortgage Trust Inc., a real estate investment trust, originates, invests in, and manages senior floating-rate commercial mortgage loans, and other debt and debt-like commercial real estate investments in the United States. The company provides intermediate-term bridge or transitional financing for various purposes, including acquisitions, recapitalizations, and refinancing, as well as a range of business plans, including lease-up, renovation, repositioning, and repurposing of the commercial property. The company qualifies as a real estate investment trust for federal income tax purposes. It generally would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. The company was founded in 2015 and is headquartered in New York, New York.