Head-To-Head Comparison: Chatham Lodging Trust (NYSE:CLDT) versus Global Medical REIT (NYSE:XRN)

Global Medical REIT (NYSE:XRN) and Chatham Lodging Trust (NYSE:CLDT) are both small-cap finance companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, risk, profitability, dividends, earnings and analyst recommendations.

Valuation & Earnings

This table compares Global Medical REIT and Chatham Lodging Trust”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	$148.21 million	3.36	-$5.84 million	($1.11)	-33.88
Chatham Lodging Trust	$295.08 million	1.71	$15.05 million	$0.02	539.50

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

Profitability

This table compares Global Medical REIT and Chatham Lodging Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Global Medical REIT	-6.06%	-2.19%	-0.73%
Chatham Lodging Trust	3.14%	1.18%	0.77%

Risk & Volatility

Global Medical REIT has a beta of 1.11, indicating that its stock price is 11% more volatile than the S&P 500. Comparatively, Chatham Lodging Trust has a beta of 1.05, indicating that its stock price is 5% more volatile than the S&P 500.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Global Medical REIT	1	3	2	1	2.43
Chatham Lodging Trust	1	1	2	0	2.25

Global Medical REIT currently has a consensus price target of $40.00, suggesting a potential upside of 6.35%. Chatham Lodging Trust has a consensus price target of $11.00, suggesting a potential upside of 1.95%. Given Global Medical REIT’s stronger consensus rating and higher possible upside, equities analysts plainly believe Global Medical REIT is more favorable than Chatham Lodging Trust.

Insider and Institutional Ownership

57.5% of Global Medical REIT shares are held by institutional investors. Comparatively, 88.4% of Chatham Lodging Trust shares are held by institutional investors. 8.9% of Global Medical REIT shares are held by insiders. Comparatively, 8.1% of Chatham Lodging Trust 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

Global Medical REIT pays an annual dividend of $3.00 per share and has a dividend yield of 8.0%. Chatham Lodging Trust pays an annual dividend of $0.40 per share and has a dividend yield of 3.7%. Global Medical REIT pays out -270.3% of its earnings in the form of a dividend. Chatham Lodging Trust pays out 2,000.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Chatham Lodging Trust 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.

Summary

Chatham Lodging Trust beats Global Medical REIT on 9 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 Chatham Lodging Trust

Chatham Lodging Trust is a self-advised, publicly traded real estate investment trust (REIT) focused primarily on investing in upscale, extended-stay hotels and premium-branded, select-service hotels. The company owns 39 hotels totaling 5,915 rooms/suites in 16 states and the District of Columbia.