Global Medical REIT (NYSE:XRN – Get Free Report) and Claros Mortgage Trust (NYSE:CMTG – Get Free Report) are both small-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, earnings, dividends, risk, institutional ownership, profitability and valuation.
Risk and Volatility
Global Medical REIT has a beta of 1.11, indicating that its stock price is 11% more volatile than the S&P 500. Comparatively, Claros Mortgage Trust has a beta of 1.14, indicating that its stock price is 14% more volatile than the S&P 500.
Profitability
This table compares Global Medical REIT and Claros Mortgage Trust’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Global Medical REIT | -6.06% | -2.19% | -0.73% |
| Claros Mortgage Trust | -267.14% | -19.34% | -6.27% |
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Global Medical REIT | $151.11 million | 3.13 | -$5.84 million | ($1.11) | -32.24 |
| Claros Mortgage Trust | $119.55 million | 2.97 | -$489.07 million | ($3.32) | -0.76 |
Global Medical REIT has higher revenue and earnings than Claros Mortgage Trust. Global Medical REIT is trading at a lower price-to-earnings ratio than Claros Mortgage Trust, indicating that it is currently the more affordable of the two stocks.
Dividends
Global Medical REIT pays an annual dividend of $1.92 per share and has a dividend yield of 5.4%. Claros Mortgage Trust pays an annual dividend of $0.40 per share and has a dividend yield of 15.8%. Global Medical REIT pays out -173.0% of its earnings in the form of a dividend. Claros Mortgage Trust pays out -12.0% 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.
Institutional & Insider Ownership
57.5% of Global Medical REIT shares are held by institutional investors. Comparatively, 89.5% of Claros Mortgage Trust shares are held by institutional investors. 8.9% of Global Medical REIT shares are held by insiders. Comparatively, 1.8% of Claros Mortgage Trust shares are held 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.
Analyst Recommendations
This is a breakdown of current ratings and price targets for Global Medical REIT and Claros Mortgage Trust, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Global Medical REIT | 1 | 3 | 2 | 1 | 2.43 |
| Claros Mortgage Trust | 3 | 0 | 1 | 0 | 1.50 |
Global Medical REIT presently has a consensus target price of $40.00, indicating a potential upside of 11.78%. Claros Mortgage Trust has a consensus target price of $2.92, indicating a potential upside of 15.06%. Given Claros Mortgage Trust’s higher possible upside, analysts plainly believe Claros Mortgage Trust is more favorable than Global Medical REIT.
Summary
Global Medical REIT beats Claros Mortgage Trust on 12 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 Claros Mortgage Trust
Claros Mortgage Trust, Inc. operates as a real estate investment trust. It focuses on originating senior and subordinate loans on transitional commercial real estate assets in the United States. The company has elected to be taxed as a real estate investment trust. As a result, it would not be subject to corporate income tax on that portion of its net income that is distributed to shareholders. The company was incorporated in 2015 and is headquartered in New York, New York.
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