Global Medical REIT (GMRE) vs. MedEquities Realty Trust (MRT) Financial Analysis
Global Medical REIT (NYSE: GMRE) and MedEquities Realty Trust (NYSE:MRT) are both small-cap financials companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, risk, analyst recommendations, earnings, dividends and profitability.
Global Medical REIT pays an annual dividend of $0.80 per share and has a dividend yield of 9.8%. MedEquities Realty Trust pays an annual dividend of $0.84 per share and has a dividend yield of 7.7%. Global Medical REIT pays out -400.0% of its earnings in the form of a dividend. MedEquities Realty Trust pays out 210.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Global Medical REIT is clearly the better dividend stock, given its higher yield and lower payout ratio.
This table compares Global Medical REIT and MedEquities Realty Trust’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Global Medical REIT||-19.98%||-2.86%||-1.39%|
|MedEquities Realty Trust||35.61%||5.88%||3.89%|
Valuation and Earnings
This table compares Global Medical REIT and MedEquities Realty Trust’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Global Medical REIT||$8.21 million||21.50||-$6.35 million||($0.20)||-40.80|
|MedEquities Realty Trust||$49.30 million||6.98||$11.05 million||$0.40||27.10|
MedEquities Realty Trust has higher revenue and earnings than Global Medical REIT. Global Medical REIT is trading at a lower price-to-earnings ratio than MedEquities Realty Trust, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent ratings and target prices for Global Medical REIT and MedEquities Realty Trust, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Global Medical REIT||0||1||5||0||2.83|
|MedEquities Realty Trust||0||1||4||0||2.80|
Global Medical REIT presently has a consensus target price of $10.75, indicating a potential upside of 31.74%. MedEquities Realty Trust has a consensus target price of $13.25, indicating a potential upside of 22.23%. Given Global Medical REIT’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Global Medical REIT is more favorable than MedEquities Realty Trust.
Risk & Volatility
Global Medical REIT has a beta of -48.24, suggesting that its share price is 4,924% less volatile than the S&P 500. Comparatively, MedEquities Realty Trust has a beta of -0.74, suggesting that its share price is 174% less volatile than the S&P 500.
Institutional and Insider Ownership
41.0% of Global Medical REIT shares are owned by institutional investors. Comparatively, 93.2% of MedEquities Realty Trust shares are owned by institutional investors. 16.5% of Global Medical REIT shares are owned by company insiders. Comparatively, 2.5% of MedEquities Realty Trust shares are owned 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.
MedEquities Realty Trust beats Global Medical REIT on 9 of the 16 factors compared between the two stocks.
Global Medical REIT Company Profile
Global Medical REIT Inc. is engaged primarily in the acquisition of licensed, purpose-built healthcare facilities and the leasing of these facilities to clinical operators with market share. The Company’s strategy is to produce increasing, reliable rental revenue by expanding its portfolio, and leasing its healthcare facilities to market operators under long-term triple-net leases.
MedEquities Realty Trust Company Profile
MedEquities Realty Trust, Inc. is a real estate investment trust (REIT). The Company invests in a diversified mix of healthcare properties and healthcare-related real estate debt investments. The Company invests primarily in real estate across the acute and post-acute spectrum of care. It focuses on investing in various types of healthcare properties, including acute care hospitals; skilled nursing facilities; short-stay surgical and specialty hospitals, which focus on orthopedic, heart and other dedicated surgeries and specialty procedures; dedicated specialty hospitals, such as inpatient rehabilitation facilities, long-term acute care hospitals and facilities providing psychiatric care; physician clinics; diagnostic facilities; outpatient surgery centers, and facilities that support these services, such as medical office buildings. As of September 30, 2016, the Company’s portfolio included 24 healthcare facilities and one healthcare-related debt investment.
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