Contrasting Global Medical REIT (NYSE:GMRE) & Douglas Emmett (NYSE:DEI)

Douglas Emmett (NYSE:DEI) and Global Medical REIT (NYSE:GMRE) are both small-cap finance companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, earnings, dividends and risk.

Profitability

This table compares Douglas Emmett and Global Medical REIT’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Douglas Emmett	2.22%	0.62%	0.24%
Global Medical REIT	0.79%	0.25%	0.09%

Dividends

Douglas Emmett pays an annual dividend of $0.76 per share and has a dividend yield of 7.2%. Global Medical REIT pays an annual dividend of $3.00 per share and has a dividend yield of 8.2%. Douglas Emmett pays out 633.3% 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 -1,200.0% 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.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Douglas Emmett and Global Medical REIT, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Douglas Emmett	1	6	2	0	2.11
Global Medical REIT	0	3	3	1	2.71

Douglas Emmett currently has a consensus target price of $15.00, indicating a potential upside of 42.11%. Global Medical REIT has a consensus target price of $41.50, indicating a potential upside of 14.00%. Given Douglas Emmett’s higher possible upside, research analysts plainly believe Douglas Emmett is more favorable than Global Medical REIT.

Volatility & Risk

Douglas Emmett has a beta of 1.14, indicating that its stock price is 14% more volatile than the S&P 500. Comparatively, Global Medical REIT has a beta of 1.18, indicating that its stock price is 18% more volatile than the S&P 500.

Valuation and Earnings

This table compares Douglas Emmett and Global Medical REIT”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Douglas Emmett	$986.48 million	1.79	$23.52 million	$0.12	87.96
Global Medical REIT	$138.78 million	3.52	$6.63 million	($0.25)	-145.62

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

Institutional and Insider Ownership

97.4% of Douglas Emmett shares are owned by institutional investors. Comparatively, 57.5% of Global Medical REIT shares are owned by institutional investors. 15.1% of Douglas Emmett shares are owned by company insiders. Comparatively, 8.5% of Global Medical REIT shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Douglas Emmett beats Global Medical REIT on 10 of the 17 factors compared between the two stocks.

About Douglas Emmett

Douglas Emmett, Inc. (DEI) is a fully integrated, self-administered and self-managed real estate investment trust (REIT), and one of the largest owners and operators of high-quality office and multifamily properties located in the premier coastal submarkets of Los Angeles and Honolulu. Douglas Emmett focuses on owning and acquiring a substantial share of top-tier office properties and premier multifamily communities in neighborhoods that possess significant supply constraints, high-end executive housing and key lifestyle amenities.

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.