Financial Contrast: Universal Health Realty Income Trust (UHT) versus Global Medical REIT (NYSE:GMRE)

Universal Health Realty Income Trust (NYSE: UHT) and Global Medical REIT (NYSE:GMRE) are both small-cap financials companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, dividends, profitability, valuation, earnings, risk and institutional ownership.

Risk & Volatility

Universal Health Realty Income Trust has a beta of 0.35, suggesting that its share price is 65% less volatile than the S&P 500. Comparatively, Global Medical REIT has a beta of -48.24, suggesting that its share price is 4,924% less volatile than the S&P 500.

Valuation & Earnings

This table compares Universal Health Realty Income 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
Universal Health Realty Income Trust $67.08 million 13.91 $17.21 million $3.24 20.98
Global Medical REIT $8.21 million 22.08 -$6.35 million ($0.20) -41.90

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

Dividends

Universal Health Realty Income Trust pays an annual dividend of $2.66 per share and has a dividend yield of 3.9%. Global Medical REIT pays an annual dividend of $0.80 per share and has a dividend yield of 9.5%. Universal Health Realty Income Trust pays out 82.1% 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 has raised its dividend for 32 consecutive years. Global Medical REIT is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider and Institutional Ownership

60.6% of Universal Health Realty Income Trust shares are held by institutional investors. Comparatively, 41.0% of Global Medical REIT shares are held by institutional investors. 1.9% of Universal Health Realty Income 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 hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Universal Health Realty Income Trust and Global Medical REIT’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Universal Health Realty Income Trust 61.38% 8.12% 3.32%
Global Medical REIT -19.98% -2.86% -1.39%

Analyst Recommendations

This is a breakdown of current ratings and target prices for Universal Health Realty Income Trust and Global Medical REIT, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Universal Health Realty Income Trust 0 0 0 0 N/A
Global Medical REIT 0 1 5 0 2.83

Global Medical REIT has a consensus target price of $10.75, indicating a potential upside of 28.28%. Given Global Medical REIT’s higher possible upside, analysts clearly believe Global Medical REIT is more favorable than Universal Health Realty Income Trust.

Summary

Universal Health Realty Income Trust beats Global Medical REIT on 9 of the 16 factors compared between the two stocks.

Universal Health Realty Income Trust Company Profile

Universal Health Realty Income Trust is a real estate investment trust (REIT). The Company invests in healthcare and human service related facilities, including acute care hospitals, rehabilitation hospitals, sub-acute facilities, surgery centers, free-standing emergency departments, childcare centers and medical office buildings (MOBs). As of February 28, 2017, the Company had 67 real estate investments located in 20 states in the United States consisting of six hospital facilities, including three acute care, one rehabilitation and two sub-acute; 54 MOBs; three free-standing emergency departments (FEDs), and four preschool and childcare centers. The Company’s facilities include Southwest Healthcare System, Inland Valley Campus, Wellington Regional Medical Center, Kindred Hospital Chicago Central, Vibra Hospital of Corpus Christi, Chesterbrook Academy, and Desert Valley Medical Center.

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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