Reviewing Healthcare Realty Trust (HR) & Global Medical REIT (GMRE)
Healthcare Realty Trust (NYSE: HR) and Global Medical REIT (NYSE:GMRE) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, profitability, earnings, institutional ownership, valuation and risk.
Healthcare Realty Trust pays an annual dividend of $1.20 per share and has a dividend yield of 3.7%. Global Medical REIT pays an annual dividend of $0.80 per share and has a dividend yield of 8.3%. Healthcare Realty Trust pays out 123.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Global Medical REIT pays out -296.3% of its earnings in the form of a dividend. Global Medical REIT is clearly the better dividend stock, given its higher yield and lower payout ratio.
This is a summary of recent ratings and price targets for Healthcare Realty Trust and Global Medical REIT, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Healthcare Realty Trust||1||2||6||0||2.56|
|Global Medical REIT||0||1||5||0||2.83|
Healthcare Realty Trust currently has a consensus target price of $33.29, suggesting a potential upside of 2.35%. Global Medical REIT has a consensus target price of $10.75, suggesting a potential upside of 12.10%. Given Global Medical REIT’s stronger consensus rating and higher possible upside, analysts plainly believe Global Medical REIT is more favorable than Healthcare Realty Trust.
This table compares Healthcare Realty Trust and Global Medical REIT’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Healthcare Realty Trust||26.70%||6.62%||3.70%|
|Global Medical REIT||-19.98%||-2.86%||-1.39%|
Earnings and Valuation
This table compares Healthcare Realty Trust and Global Medical REIT’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Healthcare Realty Trust||$411.63 million||9.87||$85.57 million||$0.97||33.53|
|Global Medical REIT||$8.21 million||25.27||-$6.35 million||($0.27)||-35.52|
Healthcare Realty Trust has higher revenue and earnings than Global Medical REIT. Global Medical REIT is trading at a lower price-to-earnings ratio than Healthcare Realty Trust, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
91.6% of Healthcare Realty Trust shares are owned by institutional investors. Comparatively, 35.9% of Global Medical REIT shares are owned by institutional investors. 1.9% of Healthcare Realty Trust shares are owned by insiders. Comparatively, 16.5% 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 stock is poised for long-term growth.
Volatility and Risk
Healthcare Realty Trust has a beta of 0.32, indicating that its stock price is 68% less volatile than the S&P 500. Comparatively, Global Medical REIT has a beta of -0.71, indicating that its stock price is 171% less volatile than the S&P 500.
Healthcare Realty Trust beats Global Medical REIT on 9 of the 16 factors compared between the two stocks.
About Healthcare Realty Trust
Healthcare Realty Trust Incorporated is a self-managed and self-administered real estate investment trust. The Company owns, leases, manages, acquires, finances, develops and redevelops real estate properties associated primarily with the delivery of outpatient healthcare services across the United States. The Company provided property management services for 146 healthcare-related properties across the nation, totaling approximately 10.3 million square feet, as of December 31, 2016. As of December 31, 2016, the Company’s 202 owned real estate properties were located in 27 states and totaled approximately 14.6 million square feet. The Company’s medical office/outpatient facilities are located in various states of the United States, such as Alabama, Arizona, California, Colorado, District of Columbia, Florida, Hawaii, Illinois, Indiana, Iowa, Minnesota, Missouri, North Carolina, Oklahoma, Tennessee, Texas, Virginia and Washington.
About Global Medical REIT
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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