Reviewing National Healthcare Properties (NASDAQ:NHP) & Global Medical REIT (NYSE:XRN)

National Healthcare Properties (NASDAQ:NHP) and Global Medical REIT (NYSE:XRN) are both small-cap real estate companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, valuation, analyst recommendations, earnings, institutional ownership, risk and dividends.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
National Healthcare Properties	-3.35%	-1.62%	-0.68%
Global Medical REIT	36.80%	13.65%	4.49%

Valuation & Earnings

This table compares National Healthcare Properties and Global Medical REIT”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
National Healthcare Properties	$344.32 million	3.38	-$57.62 million	($0.13)	-122.69
Global Medical REIT	$148.21 million	2.43	-$5.84 million	$3.50	7.79

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

Analyst Ratings

This is a breakdown of recent recommendations and price targets for National Healthcare Properties and Global Medical REIT, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
National Healthcare Properties	1	5	6	1	2.54
Global Medical REIT	0	7	2	0	2.22

National Healthcare Properties currently has a consensus target price of $18.30, indicating a potential upside of 14.73%. Global Medical REIT has a consensus target price of $40.17, indicating a potential upside of 47.40%. Given Global Medical REIT’s higher probable upside, analysts plainly believe Global Medical REIT is more favorable than National Healthcare Properties.

Insider and Institutional Ownership

57.5% of Global Medical REIT shares are owned by institutional investors. 8.9% of Global Medical REIT shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Dividends

National Healthcare Properties pays an annual dividend of $0.30 per share and has a dividend yield of 1.9%. Global Medical REIT pays an annual dividend of $1.92 per share and has a dividend yield of 7.0%. National Healthcare Properties pays out -230.8% of its earnings in the form of a dividend. Global Medical REIT pays out 54.9% 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.

Summary

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

About National Healthcare Properties

National Healthcare Properties Inc. is a self-managed real estate investment trust focused on acquiring, owning and investing in a diversified portfolio of healthcare real estate, with an emphasis on providing senior housing. National Healthcare Properties Inc. is based in NEW YORK.

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.