Reviewing Global Medical REIT (NYSE:XRN) & Omega Healthcare Investors (NYSE:OHI)

Omega Healthcare Investors (NYSE:OHI) and Global Medical REIT (NYSE:XRN) are both real estate companies, but which is the better business? We will contrast the two companies based on the strength of their dividends, analyst recommendations, earnings, risk, institutional ownership, valuation and profitability.

Profitability

This table compares Omega Healthcare Investors and Global Medical REIT’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Omega Healthcare Investors	58.11%	13.66%	7.54%
Global Medical REIT	36.80%	13.65%	4.49%

Dividends

Omega Healthcare Investors pays an annual dividend of $2.72 per share and has a dividend yield of 5.7%. Global Medical REIT pays an annual dividend of $1.92 per share and has a dividend yield of 7.2%. Omega Healthcare Investors pays out 109.7% 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 pays out 54.9% of its earnings in the form of a dividend. Global Medical REIT is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Ratings

This is a breakdown of current recommendations for Omega Healthcare Investors and Global Medical REIT, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Omega Healthcare Investors	2	7	7	0	2.31
Global Medical REIT	0	6	2	0	2.25

Omega Healthcare Investors presently has a consensus target price of $50.00, indicating a potential upside of 4.37%. Global Medical REIT has a consensus target price of $38.60, indicating a potential upside of 45.28%. Given Global Medical REIT’s higher possible upside, analysts clearly believe Global Medical REIT is more favorable than Omega Healthcare Investors.

Earnings & Valuation

This table compares Omega Healthcare Investors and Global Medical REIT”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Omega Healthcare Investors	$1.19 billion	12.25	$572.03 million	$2.48	19.32
Global Medical REIT	$154.85 million	2.27	-$5.84 million	$3.50	7.59

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

Institutional and Insider Ownership

65.2% of Omega Healthcare Investors shares are held by institutional investors. Comparatively, 57.5% of Global Medical REIT shares are held by institutional investors. 1.7% of Omega Healthcare Investors shares are held by company insiders. Comparatively, 8.9% of Global Medical REIT shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Risk & Volatility

Omega Healthcare Investors has a beta of 0.56, indicating that its stock price is 44% less volatile than the S&P 500. Comparatively, Global Medical REIT has a beta of 1.1, indicating that its stock price is 10% more volatile than the S&P 500.

Summary

Omega Healthcare Investors beats Global Medical REIT on 10 of the 16 factors compared between the two stocks.

About Omega Healthcare Investors

Omega Healthcare Investors, Inc. is a real estate investment trust (REIT) focused on healthcare facilities, particularly skilled nursing and assisted living properties. The company invests in these facilities through real estate leases, loans and other financing arrangements. Its portfolio serves healthcare operators in the United States and the United Kingdom. Omega primarily leases properties to third-party operators, which manage the facilities and provide care to residents. Founded in 1992 and headquartered in Hunt Valley, Maryland, Omega is led by President and Chief Executive Officer Taylor Pickett.

About Global Medical REIT

Global Medical REIT, Inc. is a healthcare-focused real estate investment trust that acquires and owns purpose-built medical facilities. It leases these properties to healthcare providers, including physician groups and health systems, that use them to deliver patient care. The company’s properties include medical office buildings, specialty hospitals, ambulatory surgery centers and inpatient rehabilitation facilities. Its leases are generally structured to provide long-term occupancy for tenants while supporting the company’s rental-income business.