Global Medical REIT (NYSE:GMRE) and EPR Properties (NYSE:EPR) Critical Comparison

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

Dividends

EPR Properties pays an annual dividend of $3.42 per share and has a dividend yield of 8.3%. Global Medical REIT pays an annual dividend of $0.84 per share and has a dividend yield of 9.6%. EPR Properties pays out 168.5% 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 365.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. EPR Properties has raised its dividend for 1 consecutive years.

Institutional & Insider Ownership

74.7% of EPR Properties shares are held by institutional investors. Comparatively, 57.5% of Global Medical REIT shares are held by institutional investors. 2.1% of EPR Properties shares are held by insiders. Comparatively, 8.2% of Global Medical REIT shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings and price targets for EPR Properties and Global Medical REIT, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
EPR Properties	1	6	3	0	2.20
Global Medical REIT	0	0	0	0	N/A

EPR Properties currently has a consensus target price of $48.05, indicating a potential upside of 15.98%. Global Medical REIT has a consensus target price of $12.50, indicating a potential upside of 42.37%. Given Global Medical REIT’s higher probable upside, analysts plainly believe Global Medical REIT is more favorable than EPR Properties.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
EPR Properties	25.39%	7.23%	3.12%
Global Medical REIT	12.55%	3.20%	1.35%

Valuation & Earnings

This table compares EPR Properties and Global Medical REIT’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
EPR Properties	$652.85 million	4.80	$173.05 million	$2.03	20.41
Global Medical REIT	$141.05 million	4.08	$20.61 million	$0.23	38.17

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

Volatility and Risk

EPR Properties has a beta of 1.64, suggesting that its stock price is 64% more volatile than the S&P 500. Comparatively, Global Medical REIT has a beta of 1.13, suggesting that its stock price is 13% more volatile than the S&P 500.

Summary

EPR Properties beats Global Medical REIT on 12 of the 16 factors compared between the two stocks.

About EPR Properties

EPR Properties (NYSE:EPR) is the leading diversified experiential net lease real estate investment trust (REIT), specializing in select enduring experiential properties in the real estate industry. We focus on real estate venues that create value by facilitating out of home leisure and recreation experiences where consumers choose to spend their discretionary time and money. We have total assets of approximately $5.7 billion (after accumulated depreciation of approximately $1.4 billion) across 44 states. We adhere to rigorous underwriting and investing criteria centered on key industry, property and tenant level cash flow standards. We believe our focused approach provides a competitive advantage and the potential for stable and attractive returns.

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.