Douglas Emmett (NYSE:DEI) versus Global Medical REIT (NYSE:GMRE) Head-To-Head Review

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

Analyst Ratings

This is a summary of recent ratings for Douglas Emmett and Global Medical REIT, as provided by MarketBeat.

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

Douglas Emmett currently has a consensus price target of $15.00, indicating a potential upside of 43.75%. Global Medical REIT has a consensus price target of $41.50, indicating a potential upside of 17.22%. Given Douglas Emmett’s higher possible upside, equities analysts clearly believe Douglas Emmett is more favorable than Global Medical REIT.

Dividends

Douglas Emmett pays an annual dividend of $0.76 per share and has a dividend yield of 7.3%. Global Medical REIT pays an annual dividend of $3.00 per share and has a dividend yield of 8.5%. 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 pays out -1,200.0% of its earnings in the form of a dividend. Global Medical REIT is clearly the better dividend stock, given its higher yield and lower payout ratio.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Douglas Emmett	$986.48 million	1.77	$23.52 million	$0.12	86.96
Global Medical REIT	$138.78 million	3.42	$6.63 million	($0.25)	-141.62

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.

Profitability

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

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

Volatility & Risk

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

Insider & Institutional Ownership

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

Summary

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

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.

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.