Gladstone Commercial (NASDAQ:GOOD – Get Free Report) and Global Medical REIT (NYSE:XRN – Get Free Report) are both small-cap finance companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, earnings, analyst recommendations, dividends, risk, institutional ownership and valuation.
Dividends
Gladstone Commercial pays an annual dividend of $1.20 per share and has a dividend yield of 10.1%. Global Medical REIT pays an annual dividend of $3.00 per share and has a dividend yield of 8.7%. Gladstone Commercial pays out 857.1% 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 -333.3% of its earnings in the form of a dividend.
Risk & Volatility
Gladstone Commercial has a beta of 1.09, meaning that its share price is 9% more volatile than the S&P 500. Comparatively, Global Medical REIT has a beta of 1.16, meaning that its share price is 16% more volatile than the S&P 500.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Gladstone Commercial | 0 | 3 | 0 | 0 | 2.00 |
| Global Medical REIT | 0 | 2 | 2 | 1 | 2.80 |
Gladstone Commercial currently has a consensus price target of $12.75, suggesting a potential upside of 6.78%. Global Medical REIT has a consensus price target of $40.50, suggesting a potential upside of 17.65%. Given Global Medical REIT’s stronger consensus rating and higher probable upside, analysts clearly believe Global Medical REIT is more favorable than Gladstone Commercial.
Valuation and Earnings
This table compares Gladstone Commercial and Global Medical REIT”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Gladstone Commercial | $161.34 million | 3.58 | $19.29 million | $0.14 | 85.29 |
| Global Medical REIT | $148.21 million | 3.07 | -$5.84 million | ($0.90) | -38.25 |
Gladstone Commercial has higher revenue and earnings than Global Medical REIT. Global Medical REIT is trading at a lower price-to-earnings ratio than Gladstone Commercial, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
45.5% of Gladstone Commercial shares are held by institutional investors. Comparatively, 57.5% of Global Medical REIT shares are held by institutional investors. 1.4% of Gladstone Commercial shares are held by company insiders. Comparatively, 8.5% of Global Medical REIT shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Profitability
This table compares Gladstone Commercial and Global Medical REIT’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Gladstone Commercial | 11.95% | 10.75% | 1.58% |
| Global Medical REIT | -4.85% | -1.64% | -0.57% |
Summary
Gladstone Commercial beats Global Medical REIT on 9 of the 17 factors compared between the two stocks.
About Gladstone Commercial
Gladstone Commercial Corporation is a real estate investment trust focused on acquiring, owning, and operating net leased industrial and office properties across the United States. Including payments through January 2024, Gladstone Commercial has paid 229 consecutive monthly cash distributions on its common stock. Prior to paying distributions on a monthly basis, Gladstone Commercial paid five consecutive quarterly cash distributions. Gladstone Commercial has never skipped or deferred a distribution since its inception in 2003.
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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