Critical Contrast: Global Medical REIT (GMRE) & Healthcare Trust Of America (HTA)

Global Medical REIT (NYSE: GMRE) and Healthcare Trust Of America (NYSE:HTA) are both financials companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, profitability, analyst recommendations, dividends, risk, valuation and institutional ownership.

Valuation & Earnings

This table compares Global Medical REIT and Healthcare Trust Of America’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Global Medical REIT $8.21 million 18.94 -$6.35 million ($0.20) -35.95
Healthcare Trust Of America $460.93 million 11.65 $45.91 million $0.24 109.17

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

Risk & Volatility

Global Medical REIT has a beta of -41.48, indicating that its stock price is 4,248% less volatile than the S&P 500. Comparatively, Healthcare Trust Of America has a beta of 0.16, indicating that its stock price is 84% less volatile than the S&P 500.

Institutional and Insider Ownership

42.0% of Global Medical REIT shares are held by institutional investors. Comparatively, 98.0% of Healthcare Trust Of America shares are held by institutional investors. 16.5% of Global Medical REIT shares are held by company insiders. Comparatively, 1.5% of Healthcare Trust Of America shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Global Medical REIT and Healthcare Trust Of America’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Global Medical REIT -19.98% -2.86% -1.39%
Healthcare Trust Of America 6.75% 1.50% 0.75%

Analyst Ratings

This is a summary of recent ratings and target prices for Global Medical REIT and Healthcare Trust Of America, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Global Medical REIT 0 1 5 0 2.83
Healthcare Trust Of America 0 3 8 1 2.83

Global Medical REIT presently has a consensus price target of $10.75, indicating a potential upside of 49.51%. Healthcare Trust Of America has a consensus price target of $33.78, indicating a potential upside of 28.92%. Given Global Medical REIT’s higher probable upside, equities research analysts plainly believe Global Medical REIT is more favorable than Healthcare Trust Of America.

Dividends

Global Medical REIT pays an annual dividend of $0.80 per share and has a dividend yield of 11.1%. Healthcare Trust Of America pays an annual dividend of $1.22 per share and has a dividend yield of 4.7%. Global Medical REIT pays out -400.0% of its earnings in the form of a dividend. Healthcare Trust Of America pays out 508.4% 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 has raised its dividend for 5 consecutive years. Global Medical REIT is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Healthcare Trust Of America beats Global Medical REIT on 11 of the 17 factors compared between the two stocks.

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.

Healthcare Trust Of America Company Profile

Healthcare Trust of America, Inc. is a real estate investment trust. The Company is an owner and operator of medical office buildings (MOBs) in the United States. The Company focuses on owning and operating MOBs that serve healthcare delivery and are located on health system campuses, near university medical centers, or in community core outpatient locations. As of December 31, 2016, the Company’s portfolio consisted of approximately 17.7 million square feet of gross leasable area. As of December 31, 2016, the Company’s portfolio included MOBs, such as single-tenant and multi-tenant, and other healthcare facilities, such as hospitals and senior care. As of December 31, 2016, the Company’s portfolio had 355 buildings located in 31 states. As of December 31, 2016, the Company’s properties were located in various states of the United States, such as Alabama, Arizona, California, Colorado, Florida, Georgia, Hawaii, Illinois, Indiana, Kansas, Maryland, Michigan, Minnesota, Nevada and Utah.

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