Community Healthcare Trust (NYSE: CHCT) and Global Medical REIT (NYSE:GMRE) are both small-cap financials companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, earnings, dividends, risk, valuation, analyst recommendations and institutional ownership.
This is a summary of recent ratings and recommmendations for Community Healthcare Trust and Global Medical REIT, as provided by MarketBeat.
|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 pays an annual dividend of $1.59 per share and has a dividend yield of 6.7%. Global Medical REIT pays an annual dividend of $0.80 per share and has a dividend yield of 11.2%. 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.
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%||1.48%||1.06%|
|Global Medical REIT||-19.98%||-2.86%||-1.39%|
Earnings and Valuation
This table compares Community Healthcare Trust 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|
|Community Healthcare Trust||$37.34 million||11.53||$3.50 million||$0.23||102.96|
|Global Medical REIT||$8.21 million||18.81||-$6.35 million||($0.20)||-35.70|
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.
Insider and Institutional Ownership
89.6% of Community Healthcare Trust shares are held by institutional investors. Comparatively, 49.4% of Global Medical REIT shares are held by institutional investors. 5.5% of Community Healthcare Trust shares are held by insiders. Comparatively, 16.5% of Global Medical REIT shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Community Healthcare Trust beats Global Medical REIT on 8 of the 15 factors compared between the two stocks.
About Community Healthcare Trust
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.
About Global Medical REIT
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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