Critical Review: Welltower (HCN) vs. Global Medical REIT (GMRE)

Welltower (NYSE: HCN) and Global Medical REIT (NASDAQ:GMRE) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their dividends, analyst recommendations, profitability, earnings, risk, institutional ownership and valuation.

Profitability

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

Net Margins Return on Equity Return on Assets
Welltower 28.94% 8.74% 4.39%
Global Medical REIT -8.39% -1.53% -0.72%

Earnings & Valuation

This table compares Welltower and Global Medical REIT’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Welltower $4.19 billion 5.99 $2.05 billion $3.21 21.19
Global Medical REIT N/A N/A N/A N/A N/A

Welltower has higher revenue and earnings than Global Medical REIT.

Analyst Ratings

This is a summary of recent ratings and target prices for Welltower and Global Medical REIT, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Welltower 2 8 6 0 2.25
Global Medical REIT 0 2 4 0 2.67

Welltower currently has a consensus price target of $72.69, suggesting a potential upside of 6.88%. Global Medical REIT has a consensus price target of $10.83, suggesting a potential upside of 18.92%. Given Global Medical REIT’s stronger consensus rating and higher possible upside, analysts clearly believe Global Medical REIT is more favorable than Welltower.

Dividends

Welltower pays an annual dividend of $3.48 per share and has a dividend yield of 5.1%. Global Medical REIT does not pay a dividend. Welltower pays out 108.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Global Medical REIT has increased its dividend for 7 consecutive years.

Insider and Institutional Ownership

85.9% of Welltower shares are held by institutional investors. 0.2% of Welltower shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

Welltower beats Global Medical REIT on 8 of the 12 factors compared between the two stocks.

About Welltower

Welltower Inc. invests with seniors housing operators, post-acute providers and health systems to fund real estate and infrastructure. The Company invests in seniors housing and healthcare real estate. It operates in three segments: triple-net, seniors housing operating and outpatient medical. Welltower, a real estate investment trust (REIT), owns interests in properties concentrated in markets in the United States, Canada and the United Kingdom, consisting of seniors housing and post-acute communities, and outpatient medical properties. Its triple-net properties include independent living facilities, independent supportive living facilities (Canada), continuing care retirement communities, assisted living facilities, care homes with and without nursing (the United Kingdom), Alzheimer’s/dementia care facilities, long-term/post-acute care facilities and hospitals. Its outpatient medical properties include outpatient medical buildings.

About Global Medical REIT

Global Medical REIT Inc. is engaged primarily in the acquisition of licensed, purpose-built healthcare facilities and the leasing of these facilities to clinical operators with market share. The Company’s strategy is to produce increasing, reliable rental revenue by expanding its portfolio, and leasing its healthcare facilities to market operators under long-term triple-net leases.

Receive News & Ratings for Welltower Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Welltower Inc. and related companies with MarketBeat.com's FREE daily email newsletter.

Latest News

Leave a Reply