Aviv REIT (NYSE: AVIV) and Global Medical REIT (NYSE:GMRE) are both small-cap financials companies, but which is the superior business? We will contrast the two companies based on the strength of their profitability, valuation, earnings, analyst recommendations, risk, institutional ownership and dividends.

Dividends

Global Medical REIT pays an annual dividend of $0.80 per share and has a dividend yield of 9.3%. Aviv REIT does not pay a dividend. Global Medical REIT pays out -296.3% of its earnings in the form of a dividend. Global Medical REIT has increased its dividend for 3 consecutive years.

Valuation & Earnings

This table compares Aviv REIT and Global Medical REIT’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Aviv REIT N/A N/A N/A $0.75 48.91
Global Medical REIT $8.21 million 22.66 -$6.35 million ($0.27) -31.85

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

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Aviv REIT and Global Medical REIT, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Aviv REIT 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 25.00%. Given Global Medical REIT’s higher probable upside, analysts clearly believe Global Medical REIT is more favorable than Aviv REIT.

Institutional and Insider Ownership

41.0% of Global Medical REIT shares are owned by institutional investors. 16.5% of Global Medical REIT shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

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

Net Margins Return on Equity Return on Assets
Aviv REIT 25.04% 6.86% 2.80%
Global Medical REIT -19.98% -2.86% -1.39%

Summary

Global Medical REIT beats Aviv REIT on 8 of the 12 factors compared between the two stocks.

Aviv REIT Company Profile

Aviv REIT, Inc. (AVIV) is a real estate investment trust (REIT). The Company is engaged in investments in healthcare properties, consisting primarily of skilled nursing facilities (SNFs), assisted living facilities (ALFs), and other healthcare properties located in the United States. It specializes in the ownership and triple-net leasing of post-acute and long-term care SNFs. Its leases include rent escalation provisions. The Company is the general partner of Aviv Healthcare Properties Limited Partnership. Its portfolio consists of approximately 346 properties, comprising 285 skilled nursing facilities, 35 assisted living facilities, 14 traumatic brain injury facilities, two long-term acute care hospitals, one neuro hospital, two independent living facilities, two medical office buildings, and five land parcels for development, with approximately 29,646 beds in 30 states triple-net leased to 37 operators.

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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