Contrasting Claros Mortgage Trust (NYSE:CMTG) & Global Medical REIT (NYSE:XRN)

Claros Mortgage Trust (NYSE:CMTG) and Global Medical REIT (NYSE:XRN) are both small-cap finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, institutional ownership, profitability, risk, valuation and earnings.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Claros Mortgage Trust	-267.14%	-19.34%	-6.27%
Global Medical REIT	-6.06%	-2.19%	-0.73%

Risk and Volatility

Claros Mortgage Trust has a beta of 1.18, meaning that its stock price is 18% more volatile than the S&P 500. Comparatively, Global Medical REIT has a beta of 1.11, meaning that its stock price is 11% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Claros Mortgage Trust and Global Medical REIT, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Claros Mortgage Trust	3	0	1	0	1.50
Global Medical REIT	1	3	2	1	2.43

Claros Mortgage Trust presently has a consensus price target of $2.92, indicating a potential upside of 19.29%. Global Medical REIT has a consensus price target of $40.00, indicating a potential upside of 10.67%. Given Claros Mortgage Trust’s higher probable upside, equities analysts plainly believe Claros Mortgage Trust is more favorable than Global Medical REIT.

Earnings and Valuation

This table compares Claros Mortgage Trust and Global Medical REIT”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Claros Mortgage Trust	$187.83 million	1.83	-$489.07 million	($3.32)	-0.74
Global Medical REIT	$148.21 million	3.23	-$5.84 million	($1.11)	-32.56

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

Insider and Institutional Ownership

89.5% of Claros Mortgage Trust shares are owned by institutional investors. Comparatively, 57.5% of Global Medical REIT shares are owned by institutional investors. 1.8% of Claros Mortgage Trust shares are owned by company insiders. Comparatively, 8.9% of Global Medical REIT shares are owned 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.

Summary

Global Medical REIT beats Claros Mortgage Trust on 10 of the 15 factors compared between the two stocks.

About Claros Mortgage Trust

Claros Mortgage Trust, Inc. operates as a real estate investment trust. It focuses on originating senior and subordinate loans on transitional commercial real estate assets in the United States. The company has elected to be taxed as a real estate investment trust. As a result, it would not be subject to corporate income tax on that portion of its net income that is distributed to shareholders. The company was incorporated in 2015 and is headquartered in New York, New York.

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.