Critical Contrast: National Healthcare Properties (NASDAQ:NHP) and Global Medical REIT (NYSE:XRN)

Global Medical REIT (NYSE:XRN) and National Healthcare Properties (NASDAQ:NHP) are both small-cap real estate companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, valuation, risk, dividends, institutional ownership, analyst recommendations and earnings.

Analyst Ratings

This is a summary of recent ratings and price targets for Global Medical REIT and National Healthcare Properties, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Global Medical REIT	0	6	2	0	2.25
National Healthcare Properties	0	6	6	1	2.62

Global Medical REIT presently has a consensus target price of $38.60, suggesting a potential upside of 43.10%. National Healthcare Properties has a consensus target price of $18.30, suggesting a potential upside of 16.93%. Given Global Medical REIT’s higher possible upside, equities analysts clearly believe Global Medical REIT is more favorable than National Healthcare Properties.

Valuation & Earnings

This table compares Global Medical REIT and National Healthcare Properties”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Global Medical REIT	$148.21 million	2.41	-$5.84 million	$3.50	7.71
National Healthcare Properties	$342.28 million	3.33	-$57.62 million	($0.13)	-120.38

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

Profitability

This table compares Global Medical REIT and National Healthcare Properties’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Global Medical REIT	36.80%	13.35%	4.39%
National Healthcare Properties	-3.35%	-1.53%	-0.67%

Institutional and Insider Ownership

57.5% of Global Medical REIT shares are owned by institutional investors. 8.9% of Global Medical REIT shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Dividends

Global Medical REIT pays an annual dividend of $1.92 per share and has a dividend yield of 7.1%. National Healthcare Properties pays an annual dividend of $0.30 per share and has a dividend yield of 1.9%. Global Medical REIT pays out 54.9% of its earnings in the form of a dividend. National Healthcare Properties pays out -230.8% 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.

Summary

Global Medical REIT beats National Healthcare Properties on 9 of the 15 factors compared between the two stocks.

About Global Medical REIT

Global Medical REIT, Inc. is a healthcare-focused real estate investment trust that acquires and owns purpose-built medical facilities. It leases these properties to healthcare providers, including physician groups and health systems, that use them to deliver patient care. The company’s properties include medical office buildings, specialty hospitals, ambulatory surgery centers and inpatient rehabilitation facilities. Its leases are generally structured to provide long-term occupancy for tenants while supporting the company’s rental-income business.

About National Healthcare Properties

National Healthcare Properties is a healthcare real estate company focused on owning and managing properties used to provide healthcare and senior-care services. Its business centers on leasing these facilities to healthcare operators. The company’s property focus includes senior housing and other healthcare-related real estate. Through its portfolio, National Healthcare Properties provides facilities that support care providers and the communities they serve.