Community Healthcare Trust (NYSE: CHCT) and Global Medical REIT (NYSE:GMRE) are both small-cap financials companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, profitability, analyst recommendations, dividends, earnings, risk and valuation.
This is a summary of recent ratings and recommmendations for Community Healthcare Trust and Global Medical REIT, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Community Healthcare Trust||0||1||2||0||2.67|
|Global Medical REIT||0||1||4||0||2.80|
Community Healthcare Trust presently has a consensus price target of $28.50, indicating a potential upside of 17.87%. Global Medical REIT has a consensus price target of $10.75, indicating a potential upside of 49.10%. Given Global Medical REIT’s stronger consensus rating and higher probable upside, analysts clearly believe Global Medical REIT is more favorable than Community Healthcare Trust.
Community Healthcare Trust pays an annual dividend of $1.59 per share and has a dividend yield of 6.6%. Global Medical REIT pays an annual dividend of $0.80 per share and has a dividend yield of 11.1%. Community Healthcare Trust pays out 691.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Global Medical REIT pays out -400.0% 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.
Valuation and Earnings
This table compares Community Healthcare Trust 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|
|Community Healthcare Trust||$37.34 million||11.77||$2.72 million||$0.23||105.13|
|Global Medical REIT||$8.21 million||19.00||-$6.35 million||($0.20)||-36.05|
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 table compares Community Healthcare Trust and Global Medical REIT’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Community Healthcare Trust||9.40%||1.59%||1.12%|
|Global Medical REIT||-19.98%||-2.86%||-1.39%|
Insider & Institutional Ownership
89.6% of Community Healthcare Trust shares are owned by institutional investors. Comparatively, 49.4% of Global Medical REIT shares are owned by institutional investors. 5.5% of Community Healthcare Trust shares are owned by insiders. Comparatively, 16.5% of Global Medical REIT shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Community Healthcare Trust beats Global Medical REIT on 8 of the 15 factors compared between the two stocks.
Community Healthcare Trust Company Profile
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.
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.
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