Reviewing Global Medical REIT (GMRE) and Community Healthcare Trust (CHCT)
Global Medical REIT (NYSE: GMRE) and Community Healthcare Trust (NYSE:CHCT) are both small-cap financials companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, institutional ownership, risk, valuation, dividends, earnings and analyst recommendations.
Global Medical REIT pays an annual dividend of $0.80 per share and has a dividend yield of 12.0%. Community Healthcare Trust pays an annual dividend of $1.59 per share and has a dividend yield of 6.6%. Global Medical REIT pays out -400.0% of its earnings in the form of a dividend. Community Healthcare Trust pays out 757.2% 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.
49.4% of Global Medical REIT shares are owned by institutional investors. Comparatively, 89.6% of Community Healthcare Trust shares are owned by institutional investors. 16.5% of Global Medical REIT shares are owned by insiders. Comparatively, 5.5% of Community Healthcare Trust shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Earnings and Valuation
This table compares Global Medical REIT and Community Healthcare Trust’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Global Medical REIT||$8.21 million||17.57||-$6.35 million||($0.20)||-33.35|
|Community Healthcare Trust||$37.34 million||11.82||$3.50 million||$0.21||115.58|
Community Healthcare Trust has higher revenue and earnings than Global Medical REIT. Global Medical REIT is trading at a lower price-to-earnings ratio than Community Healthcare Trust, indicating that it is currently the more affordable of the two stocks.
This is a summary of current recommendations and price targets for Global Medical REIT and Community Healthcare Trust, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Global Medical REIT||0||1||4||0||2.80|
|Community Healthcare Trust||0||1||2||0||2.67|
Global Medical REIT presently has a consensus price target of $10.75, indicating a potential upside of 61.17%. Community Healthcare Trust has a consensus price target of $27.83, indicating a potential upside of 14.68%. Given Global Medical REIT’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Global Medical REIT is more favorable than Community Healthcare Trust.
This table compares Global Medical REIT and Community Healthcare 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%|
|Community Healthcare Trust||9.40%||1.48%||1.06%|
Risk & Volatility
Global Medical REIT has a beta of -32.57, indicating that its share price is 3,357% less volatile than the S&P 500. Comparatively, Community Healthcare Trust has a beta of 0.92, indicating that its share price is 8% less volatile than the S&P 500.
Community Healthcare Trust beats Global Medical REIT on 9 of the 16 factors compared between the two stocks.
About Global Medical REIT
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.
About Community Healthcare Trust
Community Healthcare Trust Incorporated is an integrated healthcare real estate company. The Company owns and acquires, or finances, real estate properties that are leased to hospitals, doctors, healthcare systems or other healthcare service providers in non-urban markets. It has investments in healthcare real estate, including mortgage and other loans. The Company’s medical office buildings are located in areas, such as, Florida, Georgia, Illinois, Kentucky, Ohio and Texas. Its physician clinics are located in Alabama, Florida, Kansas, Pennsylvania and Wisconsin. Its surgical centers and hospitals are located in areas, such as Louisiana, Michigan and Arizona. Its behavioral facilities are located in Indiana and Illinois. Its specialty centers are located in Texas, Colorado and Alabama, among others. As of December 31, 2016, the Company had interests in 57 real estate properties and one mortgage note, located in 22 states, totaling over 1.33 million square feet in the aggregate.
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