Global Medical REIT (GMRE) versus Care Capital Properties (CCP) Critical Review
Global Medical REIT (NASDAQ: GMRE) and Care Capital Properties (NYSE:CCP) are both financials companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, earnings, risk, dividends and valuation.
Care Capital Properties pays an annual dividend of $2.28 per share and has a dividend yield of 9.4%. Global Medical REIT does not pay a dividend. Care Capital Properties pays out 121.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Earnings and Valuation
This table compares Global Medical REIT and Care Capital Properties’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Global Medical REIT||N/A||N/A||N/A||N/A||N/A|
|Care Capital Properties||N/A||N/A||N/A||$1.88||12.88|
Insider and Institutional Ownership
88.9% of Care Capital Properties shares are owned by institutional investors. 1.7% of Care Capital Properties shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
This is a breakdown of recent ratings and target prices for Global Medical REIT and Care Capital Properties, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Global Medical REIT||0||2||4||0||2.67|
|Care Capital Properties||0||3||0||0||2.00|
Global Medical REIT currently has a consensus target price of $10.83, indicating a potential upside of 17.63%. Care Capital Properties has a consensus target price of $22.50, indicating a potential downside of 7.06%. Given Global Medical REIT’s stronger consensus rating and higher probable upside, analysts clearly believe Global Medical REIT is more favorable than Care Capital Properties.
This table compares Global Medical REIT and Care Capital Properties’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Global Medical REIT||-8.39%||-1.53%||-0.72%|
|Care Capital Properties||109.47%||40.07%||16.26%|
Care Capital Properties beats Global Medical REIT on 6 of the 10 factors compared between the two stocks.
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.
About Care Capital Properties
Care Capital Properties, Inc. is a self-administered, self-managed real estate investment trust with a diversified portfolio of skilled nursing facilities (SNFs) and other healthcare assets operated by private regional and local care providers. The Company leases its properties to unaffiliated tenants under long-term triple-net leases, pursuant to which the tenants are obligated to pay all property-related expenses, including maintenance, utilities, repairs and taxes. It also manages a small portfolio of secured and unsecured loans, made primarily to its SNF operators and other post-acute care providers. As of December 31, 2016, its portfolio consisted of 345 properties operated by 38 private regional and local care providers, spread across 36 states and containing a total of approximately 38,000 beds/units. It conducts all of its operations through its operating partnership, Care Capital Properties, LP, and its subsidiaries.
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