Global Medical REIT (NYSE: GMRE) and Physicians Realty Trust (NYSE:DOC) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, profitability, earnings, risk, analyst recommendations, institutional ownership and dividends.
This table compares Global Medical REIT and Physicians 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%|
|Physicians Realty Trust||11.39%||1.70%||1.07%|
This is a breakdown of current ratings and price targets for Global Medical REIT and Physicians 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|
|Physicians Realty Trust||0||4||9||0||2.69|
Global Medical REIT currently has a consensus price target of $10.75, indicating a potential upside of 49.51%. Physicians Realty Trust has a consensus price target of $20.05, indicating a potential upside of 30.25%. Given Global Medical REIT’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Global Medical REIT is more favorable than Physicians Realty Trust.
Valuation & Earnings
This table compares Global Medical REIT and Physicians Realty Trust’s top-line 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||18.94||-$6.35 million||($0.27)||-26.63|
|Physicians Realty Trust||$241.03 million||11.44||$29.98 million||$0.23||66.92|
Physicians Realty Trust has higher revenue and earnings than Global Medical REIT. Global Medical REIT is trading at a lower price-to-earnings ratio than Physicians Realty Trust, indicating that it is currently the more affordable of the two stocks.
Global Medical REIT pays an annual dividend of $0.80 per share and has a dividend yield of 11.1%. Physicians Realty Trust pays an annual dividend of $0.92 per share and has a dividend yield of 6.0%. Global Medical REIT pays out -296.3% of its earnings in the form of a dividend. Physicians Realty Trust pays out 400.0% 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.
Institutional and Insider Ownership
42.0% of Global Medical REIT shares are held by institutional investors. Comparatively, 94.5% of Physicians Realty Trust shares are held by institutional investors. 16.5% of Global Medical REIT shares are held by insiders. Comparatively, 0.5% of Physicians Realty Trust shares are held 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.
Volatility and Risk
Global Medical REIT has a beta of -0.19, meaning that its stock price is 119% less volatile than the S&P 500. Comparatively, Physicians Realty Trust has a beta of 0.39, meaning that its stock price is 61% less volatile than the S&P 500.
Physicians Realty Trust beats Global Medical REIT on 10 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.
Physicians Realty Trust Company Profile
Physicians Realty Trust (the Trust) is a real estate investment trust. Physicians Realty L.P. is the operating partnership of the Trust. The Trust and its operating partnership are engaged in acquiring, developing, owning and managing healthcare properties that are leased to physicians, hospitals and healthcare delivery systems. As of December 31, 2016, the Company’s portfolio consisted of 246 properties located in 29 states with approximately 10,883,601 net leasable square feet. The Company invests in real estate that is integral to providing healthcare services. The Company focuses its investment activity on various types of healthcare properties, such as medical office buildings; outpatient treatment and diagnostic facilities; physician group practice clinics; ambulatory surgery centers, and specialty hospitals and treatment centers. Its properties include Arrowhead Commons, Aurora Medical Office Building, Decatur Medical Office Building and El Paso Medical Office Building.
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