Medalist Diversified REIT (NASDAQ:MDRR – Get Free Report) and Global Medical REIT (NYSE:XRN – Get Free Report) are both small-cap finance companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, dividends, valuation, analyst recommendations, institutional ownership, risk and profitability.
Valuation & Earnings
This table compares Medalist Diversified REIT 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 | |
| Medalist Diversified REIT | $10.40 million | 1.88 | -$2.39 million | $3.75 | 3.20 |
| Global Medical REIT | $148.21 million | 3.17 | -$5.84 million | ($1.11) | -31.95 |
Insider and Institutional Ownership
17.4% of Medalist Diversified REIT shares are held by institutional investors. Comparatively, 57.5% of Global Medical REIT shares are held by institutional investors. 77.6% of Medalist Diversified REIT shares are held by insiders. Comparatively, 8.9% of Global Medical REIT shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Dividends
Medalist Diversified REIT pays an annual dividend of $0.27 per share and has a dividend yield of 2.3%. Global Medical REIT pays an annual dividend of $3.00 per share and has a dividend yield of 8.5%. Medalist Diversified REIT pays out 7.2% of its earnings in the form of a dividend. Global Medical REIT pays out -270.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Medalist Diversified REIT has raised its dividend for 2 consecutive years. Global Medical REIT is clearly the better dividend stock, given its higher yield and lower payout ratio.
Analyst Recommendations
This is a breakdown of current recommendations for Medalist Diversified REIT and Global Medical REIT, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Medalist Diversified REIT | 1 | 0 | 0 | 0 | 1.00 |
| Global Medical REIT | 1 | 3 | 2 | 1 | 2.43 |
Global Medical REIT has a consensus price target of $40.00, suggesting a potential upside of 12.81%. Given Global Medical REIT’s stronger consensus rating and higher possible upside, analysts clearly believe Global Medical REIT is more favorable than Medalist Diversified REIT.
Volatility & Risk
Medalist Diversified REIT has a beta of 0.58, indicating that its share price is 42% less volatile than the S&P 500. Comparatively, Global Medical REIT has a beta of 1.11, indicating that its share price is 11% more volatile than the S&P 500.
Profitability
This table compares Medalist Diversified REIT and Global Medical REIT’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Medalist Diversified REIT | 74.73% | -16.90% | -6.11% |
| Global Medical REIT | -6.06% | -2.19% | -0.73% |
Summary
Global Medical REIT beats Medalist Diversified REIT on 12 of the 18 factors compared between the two stocks.
About Medalist Diversified REIT
Medalist Diversified REIT Inc. is a Virginia-based real estate investment trust that specializes in acquiring, owning and managing commercial real estate in the Southeast region of the U.S. The Company's strategy is to focus on commercial real estate which is expected to provide an attractive balance of risk and returns. Medalist utilizes a rigorous, consistent and replicable process for sourcing and conducting due diligence of acquisitions.
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.
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