Global Medical REIT (NYSE:GMRE – Get Free Report) and Saul Centers (NYSE:BFS – Get Free Report) are both small-cap finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their dividends, earnings, analyst recommendations, institutional ownership, risk, profitability and valuation.
Profitability
This table compares Global Medical REIT and Saul Centers’ net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Global Medical REIT | 4.18% | 1.09% | 0.45% |
Saul Centers | 20.49% | 16.61% | 2.69% |
Analyst Recommendations
This is a summary of recent ratings and price targets for Global Medical REIT and Saul Centers, as reported by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Global Medical REIT | 0 | 0 | 3 | 0 | 3.00 |
Saul Centers | 0 | 0 | 1 | 0 | 3.00 |
Dividends
Global Medical REIT pays an annual dividend of $0.84 per share and has a dividend yield of 8.9%. Saul Centers pays an annual dividend of $2.36 per share and has a dividend yield of 5.9%. 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. Saul Centers pays out 136.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Volatility and Risk
Global Medical REIT has a beta of 1.25, indicating that its share price is 25% more volatile than the S&P 500. Comparatively, Saul Centers has a beta of 1.1, indicating that its share price is 10% more volatile than the S&P 500.
Valuation & Earnings
This table compares Global Medical REIT and Saul Centers”s top-line revenue, earnings per share (EPS) and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Global Medical REIT | $137.70 million | 4.47 | $20.61 million | $0.23 | 40.83 |
Saul Centers | $264.08 million | 3.63 | $52.69 million | $1.73 | 23.10 |
Saul Centers has higher revenue and earnings than Global Medical REIT. Saul Centers 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.
Institutional & Insider Ownership
57.5% of Global Medical REIT shares are held by institutional investors. Comparatively, 50.0% of Saul Centers shares are held by institutional investors. 8.2% of Global Medical REIT shares are held by insiders. Comparatively, 56.6% of Saul Centers shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Summary
Saul Centers beats Global Medical REIT on 8 of the 15 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 Saul Centers
Saul Centers is a self-managed, self-administered equity REIT headquartered in Bethesda, Maryland. Saul Centers currently operates and manages a real estate portfolio comprised of 61 properties that includes (a) 57 community and neighborhood Shopping Centers and Mixed-Use properties with approximately 9.8 million square feet of leasable area and (b) four land and development properties. Over 85% of the Company’s property operating income is generated from properties in the metropolitan Washington, DC/Baltimore area.
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