Critical Analysis: Global Medical REIT (NYSE:GMRE) & FrontView REIT (NYSE:FVR)

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

Earnings & Valuation

This table compares Global Medical REIT and FrontView REIT”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Global Medical REIT	$138.78 million	3.47	$6.63 million	($0.25)	-143.84
FrontView REIT	$67.11 million	5.50	-$3.83 million	($0.22)	-75.18

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Global Medical REIT	0.79%	0.25%	0.09%
FrontView REIT	-5.71%	-0.76%	-0.45%

Volatility & Risk

Global Medical REIT has a beta of 1.18, meaning that its stock price is 18% more volatile than the S&P 500. Comparatively, FrontView REIT has a beta of 1.28, meaning that its stock price is 28% more volatile than the S&P 500.

Dividends

Global Medical REIT pays an annual dividend of $3.00 per share and has a dividend yield of 8.3%. FrontView REIT pays an annual dividend of $0.86 per share and has a dividend yield of 5.2%. Global Medical REIT pays out -1,200.0% of its earnings in the form of a dividend. FrontView REIT pays out -390.9% 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. Global Medical REIT is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Global Medical REIT and FrontView REIT, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Global Medical REIT	0	3	2	1	2.67
FrontView REIT	2	2	2	1	2.29

Global Medical REIT presently has a consensus target price of $42.00, suggesting a potential upside of 16.80%. FrontView REIT has a consensus target price of $15.80, suggesting a potential downside of 4.47%. Given Global Medical REIT’s stronger consensus rating and higher possible upside, research analysts clearly believe Global Medical REIT is more favorable than FrontView REIT.

Insider and Institutional Ownership

57.5% of Global Medical REIT shares are held by institutional investors. 8.5% of Global Medical REIT shares are held by company insiders. Comparatively, 4.3% of FrontView REIT shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

Global Medical REIT beats FrontView REIT on 11 of the 15 factors compared between the two stocks.

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.

About FrontView REIT

FrontView REIT specializes in real estate investing.