Comparing Dynex Capital (NYSE:DX) & EPR Properties (NYSE:EPR)

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

Dividends

Dynex Capital pays an annual dividend of $1.80 per share and has a dividend yield of 14.5%. EPR Properties pays an annual dividend of $3.42 per share and has a dividend yield of 7.6%. 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. 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 is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares Dynex Capital and EPR Properties’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Dynex Capital	28.83%	-4.80%	-0.63%
EPR Properties	28.87%	8.22%	3.52%

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Dynex Capital and EPR Properties, as reported by MarketBeat.

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

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

Insider and Institutional Ownership

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

Earnings and Valuation

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

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

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.

Risk and Volatility

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

Summary

EPR Properties beats Dynex Capital on 10 of the 17 factors compared between the two stocks.

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.

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.