Global Medical REIT (NYSE:GMRE) & Orion Office REIT (NYSE:ONL) Financial Review

Global Medical REIT (NYSE:GMRE) and Orion Office REIT (NYSE:ONL) are both small-cap finance companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, risk, dividends, institutional ownership, earnings, profitability and valuation.

Valuation & Earnings

This table compares Global Medical REIT and Orion Office REIT”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Global Medical REIT	$138.78 million	3.15	$6.63 million	($0.25)	-130.54
Orion Office REIT	$164.86 million	0.72	-$103.01 million	($2.44)	-0.87

Global Medical REIT has higher earnings, but lower revenue than Orion Office REIT. Global Medical REIT is trading at a lower price-to-earnings ratio than Orion Office REIT, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Global Medical REIT and Orion Office REIT’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Global Medical REIT	0.79%	0.25%	0.09%
Orion Office REIT	-90.36%	-18.73%	-10.53%

Dividends

Global Medical REIT pays an annual dividend of $3.00 per share and has a dividend yield of 9.2%. Orion Office REIT pays an annual dividend of $0.08 per share and has a dividend yield of 3.8%. Global Medical REIT pays out -1,200.0% of its earnings in the form of a dividend. Orion Office REIT pays out -3.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Global Medical REIT is clearly the better dividend stock, given its higher yield and lower payout ratio.

Insider & Institutional Ownership

57.5% of Global Medical REIT shares are owned by institutional investors. Comparatively, 80.0% of Orion Office REIT shares are owned by institutional investors. 8.5% of Global Medical REIT shares are owned by insiders. Comparatively, 0.2% of Orion Office REIT shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Global Medical REIT and Orion Office REIT, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Global Medical REIT	0	3	3	1	2.71
Orion Office REIT	1	1	0	0	1.50

Global Medical REIT presently has a consensus target price of $41.50, suggesting a potential upside of 27.16%. Given Global Medical REIT’s stronger consensus rating and higher probable upside, equities analysts clearly believe Global Medical REIT is more favorable than Orion Office REIT.

Volatility and Risk

Global Medical REIT has a beta of 1.17, meaning that its share price is 17% more volatile than the S&P 500. Comparatively, Orion Office REIT has a beta of 1.41, meaning that its share price is 41% more volatile than the S&P 500.

Summary

Global Medical REIT beats Orion Office REIT on 13 of the 17 factors compared between the two stocks.

About Global Medical REIT

Global Medical REIT Inc. (GMRE) is a net-lease medical office real estate investment trust (REIT) that owns and acquires healthcare facilities and leases those facilities to physician groups and regional and national healthcare systems.

About Orion Office REIT

Orion Office REIT specializes in the ownership, acquisition and management of a diversified portfolio of mission-critical and corporate headquarters office buildings in high-quality suburban markets across the U.S. The portfolio is leased primarily on a single-tenant net lease basis to creditworthy tenants. The company's team of experienced industry leaders employs a proven, cycle-tested investment evaluation framework which serves as the lens through which capital allocation decisions are made for the current portfolio and future acquisitions.