Global Medical REIT (NYSE: GMRE) and Medical Properties Trust (NYSE:MPW) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, earnings, valuation, analyst recommendations, institutional ownership, profitability and dividends.
This is a summary of current recommendations and price targets for Global Medical REIT and Medical Properties Trust, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Global Medical REIT||0||1||5||0||2.83|
|Medical Properties Trust||0||6||4||0||2.40|
Volatility & Risk
Global Medical REIT has a beta of -0.04, indicating that its share price is 104% less volatile than the S&P 500. Comparatively, Medical Properties Trust has a beta of 0.96, indicating that its share price is 4% less volatile than the S&P 500.
Global Medical REIT pays an annual dividend of $0.80 per share and has a dividend yield of 9.9%. Medical Properties Trust pays an annual dividend of $0.96 per share and has a dividend yield of 7.4%. Global Medical REIT pays out -296.3% of its earnings in the form of a dividend. Medical Properties Trust pays out 126.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Medical Properties Trust has increased its dividend for 4 consecutive years. Global Medical REIT is clearly the better dividend stock, given its higher yield and lower payout ratio.
Institutional & Insider Ownership
41.0% of Global Medical REIT shares are held by institutional investors. Comparatively, 81.2% of Medical Properties Trust shares are held by institutional investors. 16.5% of Global Medical REIT shares are held by company insiders. Comparatively, 1.0% of Medical Properties Trust 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.
Valuation & Earnings
This table compares Global Medical REIT and Medical Properties Trust’s 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||21.39||-$6.35 million||($0.27)||-30.07|
|Medical Properties Trust||$541.14 million||8.77||$225.04 million||$0.76||17.14|
Medical Properties Trust has higher revenue and earnings than Global Medical REIT. Global Medical REIT is trading at a lower price-to-earnings ratio than Medical Properties Trust, indicating that it is currently the more affordable of the two stocks.
This table compares Global Medical REIT and Medical Properties 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%|
|Medical Properties Trust||39.95%||7.36%||3.54%|
Medical Properties Trust beats Global Medical REIT on 10 of the 17 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.
Medical Properties Trust Company Profile
Medical Properties Trust, Inc. is a real estate investment trust (REIT). The Company focuses on investing in and owning net-leased healthcare facilities across the United States and selectively in foreign jurisdictions. The Company’s segment is its investments in healthcare real estate, including mortgage and other loans, as well as any equity investments in its tenants. The Company conducts its operations through MPT Operating Partnership, L.P. The Company acquires and develops healthcare facilities, and leases the facilities to healthcare operating companies under long-term net leases. The Company makes mortgage loans to healthcare operators collateralized by their real estate assets. As of February 24, 2017, the Company’s portfolio consisted of 232 properties, including 215 facilities (of the 220 facilities that it owns) were leased to 30 tenants, five were under development, and the remaining assets were in the form of mortgage loans to four operators.
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