Head to Head Survey: Dynex Capital (NYSE:DX) vs. EPR Properties (NYSE:EPR)

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

Dividends

EPR Properties pays an annual dividend of $3.42 per share and has a dividend yield of 7.6%. Dynex Capital pays an annual dividend of $1.80 per share and has a dividend yield of 14.5%. 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. Dynex Capital pays out 142.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Dynex Capital is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Ratings

This is a breakdown of current recommendations and price targets for EPR Properties and Dynex Capital, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
EPR Properties	2	4	3	1	2.30
Dynex Capital	0	2	4	0	2.67

EPR Properties currently has a consensus target price of $48.28, suggesting a potential upside of 7.24%. Dynex Capital has a consensus target price of $13.35, suggesting a potential upside of 7.75%. Given Dynex Capital’s stronger consensus rating and higher probable upside, analysts plainly believe Dynex Capital is more favorable than EPR Properties.

Institutional & Insider Ownership

74.7% of EPR Properties shares are owned by institutional investors. Comparatively, 38.3% of Dynex Capital shares are owned by institutional investors. 2.1% of EPR Properties shares are owned by company insiders. Comparatively, 2.5% of Dynex Capital shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares EPR Properties and Dynex Capital’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%
Dynex Capital	28.83%	-4.80%	-0.63%

Risk & Volatility

EPR Properties has a beta of 1.76, meaning that its share price is 76% more volatile than the S&P 500. Comparatively, Dynex Capital has a beta of 1.32, meaning that its share price is 32% more volatile than the S&P 500.

Valuation & Earnings

This table compares EPR Properties and Dynex Capital”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
EPR Properties	$636.87 million	5.35	$173.05 million	$2.31	19.49
Dynex Capital	$123.18 million	7.98	-$6.13 million	$1.26	9.83

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

Summary

EPR Properties beats Dynex Capital on 10 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 Dynex Capital

Dynex Capital, Inc., a mortgage real estate investment trust, invests in mortgage-backed securities (MBS) on a leveraged basis in the United States. It invests in agency and non-agency MBS consisting of residential MBS, commercial MBS (CMBS), and CMBS interest-only securities. Agency MBS have a guaranty of principal payment by an agency of the U.S. government or a U.S. government-sponsored entity, such as Fannie Mae and Freddie Mac. Non-Agency MBS have no such guaranty of payment. The company has qualified as a real estate investment trust for federal income tax purposes. It generally would not be subject to federal income taxes if it distributes at least 90% of its taxable income to its stockholders as dividends. Dynex Capital, Inc. was incorporated in 1987 and is headquartered in Glen Allen, Virginia.