Contrasting Vornado Realty Trust (NYSE:VNO) & Global Medical REIT (NYSE:GMRE)

Vornado Realty Trust (NYSE:VNO) and Global Medical REIT (NYSE:GMRE) are both finance companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, earnings, institutional ownership, analyst recommendations, profitability, dividends and risk.

Insider and Institutional Ownership

90.0% of Vornado Realty Trust shares are owned by institutional investors. Comparatively, 57.5% of Global Medical REIT shares are owned by institutional investors. 8.4% of Vornado Realty Trust shares are owned by company insiders. Comparatively, 8.5% of Global Medical REIT shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Vornado Realty Trust	3.94%	1.60%	0.44%
Global Medical REIT	3.23%	0.86%	0.35%

Valuation and Earnings

This table compares Vornado Realty Trust 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
Vornado Realty Trust	$1.81 billion	4.01	$70.39 million	$0.52	72.90
Global Medical REIT	$137.94 million	3.08	$20.61 million	$0.03	211.67

Vornado Realty Trust has higher revenue and earnings than Global Medical REIT. Vornado Realty Trust 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.

Dividends

Vornado Realty Trust pays an annual dividend of $0.74 per share and has a dividend yield of 2.0%. Global Medical REIT pays an annual dividend of $0.84 per share and has a dividend yield of 13.2%. Vornado Realty Trust pays out 142.3% 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 2,800.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Risk & Volatility

Vornado Realty Trust has a beta of 1.47, indicating that its share price is 47% more volatile than the S&P 500. Comparatively, Global Medical REIT has a beta of 1.23, indicating that its share price is 23% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for Vornado Realty Trust and Global Medical REIT, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vornado Realty Trust	2	6	3	0	2.09
Global Medical REIT	0	2	2	0	2.50

Vornado Realty Trust currently has a consensus target price of $38.09, suggesting a potential upside of 0.48%. Global Medical REIT has a consensus target price of $10.44, suggesting a potential upside of 64.37%. Given Global Medical REIT’s stronger consensus rating and higher possible upside, analysts clearly believe Global Medical REIT is more favorable than Vornado Realty Trust.

Summary

Vornado Realty Trust beats Global Medical REIT on 12 of the 16 factors compared between the two stocks.

About Vornado Realty Trust

Vornado Realty Trust is a fully – integrated equity real estate investment trust.

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.