Global Medical REIT (NYSE: GMRE) and LTC Properties (NYSE:LTC) are both small-cap finance companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, analyst recommendations, earnings, valuation, institutional ownership, dividends and profitability.
This table compares Global Medical REIT and LTC Properties’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Global Medical REIT||-19.98%||-2.86%||-1.39%|
This table compares Global Medical REIT and LTC Properties’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Global Medical REIT||$8.21 million||22.24||-$6.35 million||($0.27)||-31.26|
|LTC Properties||$161.58 million||11.26||$85.11 million||$2.23||20.61|
LTC Properties has higher revenue and earnings than Global Medical REIT. Global Medical REIT is trading at a lower price-to-earnings ratio than LTC Properties, indicating that it is currently the more affordable of the two stocks.
Global Medical REIT pays an annual dividend of $0.80 per share and has a dividend yield of 9.5%. LTC Properties pays an annual dividend of $2.28 per share and has a dividend yield of 5.0%. Global Medical REIT pays out -296.3% of its earnings in the form of a dividend. LTC Properties pays out 102.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. LTC Properties has increased its dividend for 5 consecutive years. Global Medical REIT is clearly the better dividend stock, given its higher yield and lower payout ratio.
Volatility & Risk
Global Medical REIT has a beta of -0.18, suggesting that its share price is 118% less volatile than the S&P 500. Comparatively, LTC Properties has a beta of 0.16, suggesting that its share price is 84% less volatile than the S&P 500.
Insider & Institutional Ownership
41.0% of Global Medical REIT shares are held by institutional investors. Comparatively, 78.3% of LTC Properties shares are held by institutional investors. 16.5% of Global Medical REIT shares are held by insiders. Comparatively, 1.5% of LTC Properties shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
This is a summary of recent recommendations for Global Medical REIT and LTC Properties, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Global Medical REIT||0||1||5||0||2.83|
Global Medical REIT currently has a consensus target price of $10.75, suggesting a potential upside of 27.37%. LTC Properties has a consensus target price of $50.17, suggesting a potential upside of 9.15%. Given Global Medical REIT’s stronger consensus rating and higher probable upside, equities analysts clearly believe Global Medical REIT is more favorable than LTC Properties.
LTC Properties beats Global Medical REIT on 9 of the 17 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.
LTC Properties Company Profile
LTC Properties Inc. is a healthcare real estate investment trust (REIT). The Company invests in senior housing and healthcare properties through sale-leaseback transactions, mortgage financing and structured finance solutions, including mezzanine lending. It invests in various properties, including Skilled nursing facilities (SNF), Assisted living facilities (ALF), Independent living facilities (ILF), Memory care facilities (MC) and Range of care facilities (ROC). SNF provides restorative, rehabilitative and nursing care. Many skilled nursing facilities provide ancillary services that include occupational, speech, physical, respiratory and IV therapies, as well as sub-acute care services, which are paid either by the patient, the patient’s family, private health insurance, or through the federal Medicare or state Medicaid programs. ALF serves people requiring assistance with activities of daily living, but do not require the constant supervision skilled nursing facilities provide.
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