Global Medical REIT (NYSE:GMRE) & Douglas Emmett (NYSE:DEI) Critical Contrast

Global Medical REIT (NYSE:GMRE) and Douglas Emmett (NYSE:DEI) are both small-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their risk, analyst recommendations, valuation, profitability, dividends, earnings and institutional ownership.

Analyst Ratings

This is a summary of recent recommendations and price targets for Global Medical REIT and Douglas Emmett, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Global Medical REIT	0	3	3	1	2.71
Douglas Emmett	1	6	2	0	2.11

Global Medical REIT currently has a consensus target price of $41.50, suggesting a potential upside of 13.12%. Douglas Emmett has a consensus target price of $15.00, suggesting a potential upside of 41.51%. Given Douglas Emmett’s higher probable upside, analysts plainly believe Douglas Emmett is more favorable than Global Medical REIT.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Global Medical REIT	0.79%	0.25%	0.09%
Douglas Emmett	2.22%	0.62%	0.24%

Volatility and Risk

Global Medical REIT has a beta of 1.18, meaning that its stock price is 18% more volatile than the S&P 500. Comparatively, Douglas Emmett has a beta of 1.14, meaning that its stock price is 14% more volatile than the S&P 500.

Dividends

Global Medical REIT pays an annual dividend of $3.00 per share and has a dividend yield of 8.2%. Douglas Emmett pays an annual dividend of $0.76 per share and has a dividend yield of 7.2%. Global Medical REIT pays out -1,200.0% of its earnings in the form of a dividend. Douglas Emmett pays out 633.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Global Medical REIT is clearly the better dividend stock, given its higher yield and lower payout ratio.

Insider & Institutional Ownership

57.5% of Global Medical REIT shares are held by institutional investors. Comparatively, 97.4% of Douglas Emmett shares are held by institutional investors. 8.5% of Global Medical REIT shares are held by insiders. Comparatively, 15.1% of Douglas Emmett shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Global Medical REIT and Douglas Emmett”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Global Medical REIT	$138.78 million	3.54	$6.63 million	($0.25)	-146.74
Douglas Emmett	$999.53 million	1.78	$23.52 million	$0.12	88.33

Douglas Emmett has higher revenue and earnings than Global Medical REIT. Global Medical REIT is trading at a lower price-to-earnings ratio than Douglas Emmett, indicating that it is currently the more affordable of the two stocks.

Summary

Douglas Emmett beats Global Medical REIT on 10 of the 17 factors compared between the two stocks.

About Global Medical REIT

Global Medical REIT Inc. (GMRE) is a net-lease medical office real estate investment trust (REIT) that owns and acquires healthcare facilities and leases those facilities to physician groups and regional and national healthcare systems.

About Douglas Emmett

Douglas Emmett, Inc. (DEI) is a fully integrated, self-administered and self-managed real estate investment trust (REIT), and one of the largest owners and operators of high-quality office and multifamily properties located in the premier coastal submarkets of Los Angeles and Honolulu. Douglas Emmett focuses on owning and acquiring a substantial share of top-tier office properties and premier multifamily communities in neighborhoods that possess significant supply constraints, high-end executive housing and key lifestyle amenities.