Global Medical REIT (NASDAQ: GMRE) and HCP (NYSE:HCP) are both financials companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, earnings, risk, institutional ownership, valuation, analyst recommendations and dividends.

Insider & Institutional Ownership

89.6% of HCP shares are owned by institutional investors. 0.2% of HCP shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Dividends

HCP pays an annual dividend of $1.48 per share and has a dividend yield of 5.6%. Global Medical REIT does not pay a dividend. HCP pays out 102.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Valuation and Earnings

This table compares Global Medical REIT and HCP’s top-line revenue, earnings per share (EPS) 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
HCP $2.02 billion 6.12 $1.17 billion $1.45 18.18

HCP has higher revenue and earnings than Global Medical REIT.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Global Medical REIT and HCP, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Global Medical REIT 0 2 4 0 2.67
HCP 1 13 1 0 2.00

Global Medical REIT presently has a consensus target price of $10.83, suggesting a potential upside of 18.79%. HCP has a consensus target price of $31.50, suggesting a potential upside of 19.50%. Given HCP’s higher probable upside, analysts plainly believe HCP is more favorable than Global Medical REIT.

Profitability

This table compares Global Medical REIT and HCP’s 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%
HCP 32.16% 9.96% 4.19%

Summary

HCP beats Global Medical REIT on 8 of the 11 factors compared between the two stocks.

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.

HCP Company Profile

HCP, Inc. is a self-administered real estate investment trust. The Company invests in real estate serving the healthcare industry in the United States. The Company’s segments include senior housing triple-net (SH NNN), senior housing operating portfolio (SHOP), life science and medical office. Its senior housing facilities include independent living facilities, assisted living facilities, memory care facilities, care homes, and continuing care retirement communities. Its Life science properties contain laboratory and office space for biotechnology, medical device and pharmaceutical companies, scientific research institutions, government agencies and other organizations. Its Medical office buildings contain physicians’ offices and examination rooms, and may include pharmacies, hospital ancillary service space and outpatient services. As of December 31, 2016, it had interests in and managed 15 hospitals, 61 care homes in the United Kingdom and five post-acute/skilled nursing facilities.

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