Financial Comparison: Peakstone Realty Trust (NYSE:PKST) and Global Medical REIT (NYSE:GMRE)

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

Earnings and Valuation

This table compares Global Medical REIT and Peakstone Realty Trust”s 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
Peakstone Realty Trust	$105.98 million	7.30	-$307.71 million	($8.39)	-2.48

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

Dividends

Global Medical REIT pays an annual dividend of $3.00 per share and has a dividend yield of 8.3%. Peakstone Realty Trust pays an annual dividend of $0.40 per share and has a dividend yield of 1.9%. Global Medical REIT pays out -1,200.0% of its earnings in the form of a dividend. Peakstone Realty Trust pays out -4.8% 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. Peakstone Realty Trust has increased its dividend for 1 consecutive years. Global Medical REIT is clearly the better dividend stock, given its higher yield and lower payout ratio.

Risk & Volatility

Global Medical REIT has a beta of 1.18, suggesting that its stock price is 18% more volatile than the S&P 500. Comparatively, Peakstone Realty Trust has a beta of 1.46, suggesting that its stock price is 46% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Global Medical REIT and Peakstone Realty Trust, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Global Medical REIT	0	3	2	1	2.67
Peakstone Realty Trust	1	3	0	0	1.75

Global Medical REIT currently has a consensus target price of $42.00, indicating a potential upside of 16.80%. Peakstone Realty Trust has a consensus target price of $21.00, indicating a potential upside of 0.89%. Given Global Medical REIT’s stronger consensus rating and higher probable upside, equities analysts clearly believe Global Medical REIT is more favorable than Peakstone Realty Trust.

Insider and Institutional Ownership

57.5% of Global Medical REIT shares are held by institutional investors. Comparatively, 39.0% of Peakstone Realty Trust shares are held by institutional investors. 8.5% of Global Medical REIT shares are held by company insiders. Comparatively, 0.8% of Peakstone Realty Trust shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Global Medical REIT and Peakstone Realty Trust’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%
Peakstone Realty Trust	-189.03%	-39.44%	-16.55%

Summary

Global Medical REIT beats Peakstone Realty Trust on 14 of the 18 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 Peakstone Realty Trust

Peakstone Realty Trust (NYSE: PKST) is an internally managed, real estate investment trust (REIT) that owns and operates a high-quality, newer-vintage portfolio of predominantly single-tenant industrial and office properties. These assets are generally leased to creditworthy tenants under long-term net lease agreements with contractual rent escalations. As of March 31, 2023, Peakstone's wholly-owned portfolio consists of 19 million square feet across 24 states in primarily high-growth, strategic coastal and sunbelt markets.