Healthcare Trust Of America (NYSE: HTA) and Global Medical REIT (NYSE:GMRE) are both finance companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, valuation, profitability, institutional ownership, risk, analyst recommendations and earnings.
Healthcare Trust Of America pays an annual dividend of $1.22 per share and has a dividend yield of 4.8%. Global Medical REIT pays an annual dividend of $0.80 per share and has a dividend yield of 11.1%. Healthcare Trust Of America pays out 508.4% 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 -400.0% of its earnings in the form of a dividend. Healthcare Trust Of America 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.
This table compares Healthcare Trust Of America and Global Medical REIT’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Healthcare Trust Of America||6.75%||1.50%||0.75%|
|Global Medical REIT||-19.98%||-2.86%||-1.39%|
Earnings and Valuation
This table compares Healthcare Trust Of America and Global Medical REIT’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Healthcare Trust Of America||$460.93 million||11.41||$45.91 million||$0.24||106.92|
|Global Medical REIT||$8.21 million||18.97||-$6.35 million||($0.20)||-36.00|
Healthcare Trust Of America has higher revenue and earnings than Global Medical REIT. Global Medical REIT is trading at a lower price-to-earnings ratio than Healthcare Trust Of America, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Healthcare Trust Of America has a beta of 0.16, meaning that its stock price is 84% less volatile than the S&P 500. Comparatively, Global Medical REIT has a beta of -41.48, meaning that its stock price is 4,248% less volatile than the S&P 500.
This is a breakdown of current ratings for Healthcare Trust Of America and Global Medical REIT, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Healthcare Trust Of America||0||3||8||1||2.83|
|Global Medical REIT||0||1||5||0||2.83|
Healthcare Trust Of America presently has a consensus target price of $33.78, indicating a potential upside of 31.64%. Global Medical REIT has a consensus target price of $10.75, indicating a potential upside of 49.31%. Given Global Medical REIT’s higher probable upside, analysts clearly believe Global Medical REIT is more favorable than Healthcare Trust Of America.
Insider & Institutional Ownership
98.2% of Healthcare Trust Of America shares are held by institutional investors. Comparatively, 41.8% of Global Medical REIT shares are held by institutional investors. 1.5% of Healthcare Trust Of America shares are held by insiders. Comparatively, 16.5% of Global Medical REIT shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Healthcare Trust Of America beats Global Medical REIT on 12 of the 17 factors compared between the two stocks.
About Healthcare Trust Of America
Healthcare Trust of America, Inc. is a real estate investment trust. The Company is an owner and operator of medical office buildings (MOBs) in the United States. The Company focuses on owning and operating MOBs that serve healthcare delivery and are located on health system campuses, near university medical centers, or in community core outpatient locations. As of December 31, 2016, the Company’s portfolio consisted of approximately 17.7 million square feet of gross leasable area. As of December 31, 2016, the Company’s portfolio included MOBs, such as single-tenant and multi-tenant, and other healthcare facilities, such as hospitals and senior care. As of December 31, 2016, the Company’s portfolio had 355 buildings located in 31 states. As of December 31, 2016, the Company’s properties were located in various states of the United States, such as Alabama, Arizona, California, Colorado, Florida, Georgia, Hawaii, Illinois, Indiana, Kansas, Maryland, Michigan, Minnesota, Nevada and Utah.
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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