Comparing Global Medical REIT (NYSE:XRN) & Mackenzie Realty Capital (NASDAQ:MKZR)

Mackenzie Realty Capital (NASDAQ:MKZR) and Global Medical REIT (NYSE:XRN) are both small-cap finance companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, earnings, valuation, analyst recommendations, risk, dividends and profitability.

Risk & Volatility

Mackenzie Realty Capital has a beta of -0.9, suggesting that its share price is 190% less volatile than the S&P 500. Comparatively, Global Medical REIT has a beta of 1.1, suggesting that its share price is 10% more volatile than the S&P 500.

Profitability

This table compares Mackenzie Realty Capital and Global Medical REIT’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Mackenzie Realty Capital	-90.30%	-18.99%	-7.07%
Global Medical REIT	-6.06%	-2.19%	-0.73%

Insider and Institutional Ownership

57.5% of Global Medical REIT shares are owned by institutional investors. 6.3% of Mackenzie Realty Capital shares are owned by insiders. Comparatively, 8.9% of Global Medical REIT shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Dividends

Mackenzie Realty Capital pays an annual dividend of $2.00 per share and has a dividend yield of 117.0%. Global Medical REIT pays an annual dividend of $1.92 per share and has a dividend yield of 5.2%. Mackenzie Realty Capital pays out -32.5% of its earnings in the form of a dividend. Global Medical REIT pays out -173.0% 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.

Valuation & Earnings

This table compares Mackenzie Realty Capital 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
Mackenzie Realty Capital	$19.38 million	0.20	-$25.92 million	($6.15)	-0.28
Global Medical REIT	$148.21 million	3.29	-$5.84 million	($1.11)	-33.18

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

Analyst Ratings

This is a breakdown of current ratings for Mackenzie Realty Capital and Global Medical REIT, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mackenzie Realty Capital	1	0	0	0	1.00
Global Medical REIT	0	5	2	1	2.50

Global Medical REIT has a consensus price target of $40.25, indicating a potential upside of 9.27%. Given Global Medical REIT’s stronger consensus rating and higher probable upside, analysts clearly believe Global Medical REIT is more favorable than Mackenzie Realty Capital.

Summary

Global Medical REIT beats Mackenzie Realty Capital on 15 of the 17 factors compared between the two stocks.

About Mackenzie Realty Capital

MacKenzie Realty Capital Inc. is a REIT which focused on investing in multifamily housing and office real estate properties located principally in the United States. MacKenzie Realty Capital Inc. is based in ORINDA, Calif.

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.