CareTrust REIT (NASDAQ: CTRE) and Global Medical REIT (NASDAQ:GMRE) are both finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, valuation, institutional ownership, profitability, earnings and dividends.

Institutional & Insider Ownership

89.4% of CareTrust REIT shares are owned by institutional investors. 1.6% of CareTrust REIT shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for CareTrust REIT and Global Medical REIT, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CareTrust REIT 0 4 3 0 2.43
Global Medical REIT 0 2 4 0 2.67

CareTrust REIT currently has a consensus target price of $18.33, indicating a potential downside of 6.41%. Global Medical REIT has a consensus target price of $10.67, indicating a potential upside of 15.82%. Given Global Medical REIT’s stronger consensus rating and higher probable upside, analysts plainly believe Global Medical REIT is more favorable than CareTrust REIT.

Valuation and Earnings

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

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
CareTrust REIT $118.79 million 12.52 $96.91 million $0.45 43.53
Global Medical REIT N/A N/A N/A N/A N/A

CareTrust REIT has higher revenue and earnings than Global Medical REIT.

Profitability

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

Net Margins Return on Equity Return on Assets
CareTrust REIT 24.02% 5.76% 3.03%
Global Medical REIT -8.39% -1.53% -0.72%

Summary

CareTrust REIT beats Global Medical REIT on 6 of the 9 factors compared between the two stocks.

CareTrust REIT Company Profile

CareTrust REIT, Inc. is a self-administered, self-managed real estate investment trust. The Company is engaged in the ownership, acquisition and leasing of healthcare-related properties. It makes investments in healthcare-related real estate assets. As of December 31, 2016, its real estate portfolio included 154 skilled nursing facilities (SNFs), SNF Campuses, assisted living facilities and independent living facilities. As of December 31, 2016, the 93 facilities leased to The Ensign Group, Inc. had a total of 9,916 beds and units and are located in Arizona, California, Colorado, Idaho, Iowa, Nebraska, Nevada, Texas, Utah and Washington; the 16 facilities leased to affiliates of Pristine Senior Living, LLC had a total of 1,488 beds and units; and the 42 remaining leased properties had a total of 3,515 beds and units and are located in California, Colorado, Florida, Georgia, Idaho, Indiana, Iowa, Maryland, Michigan, Minnesota, North Carolina, Texas, Virginia, Washington and Wisconsin.

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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