Financial Comparison: Omega Healthcare Investors (OHI) & Global Medical REIT (GMRE)
Omega Healthcare Investors (NYSE: OHI) and Global Medical REIT (NYSE:GMRE) are both finance companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, valuation, institutional ownership, analyst recommendations, earnings, risk and dividends.
Institutional and Insider Ownership
68.1% of Omega Healthcare Investors shares are held by institutional investors. Comparatively, 41.0% of Global Medical REIT shares are held by institutional investors. 1.5% of Omega Healthcare Investors shares are held by insiders. Comparatively, 16.5% of Global Medical REIT shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Volatility and Risk
Omega Healthcare Investors has a beta of 0.49, indicating that its stock price is 51% less volatile than the S&P 500. Comparatively, Global Medical REIT has a beta of -0.18, indicating that its stock price is 118% less volatile than the S&P 500.
This is a breakdown of recent recommendations and price targets for Omega Healthcare Investors and Global Medical REIT, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Omega Healthcare Investors||0||4||1||0||2.20|
|Global Medical REIT||0||1||5||0||2.83|
Omega Healthcare Investors currently has a consensus price target of $30.75, indicating a potential upside of 14.23%. Global Medical REIT has a consensus price target of $10.75, indicating a potential upside of 20.65%. Given Global Medical REIT’s stronger consensus rating and higher probable upside, analysts clearly believe Global Medical REIT is more favorable than Omega Healthcare Investors.
Earnings and Valuation
This table compares Omega Healthcare Investors and Global Medical REIT’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Omega Healthcare Investors||$900.83 million||5.92||$366.41 million||$0.82||32.83|
|Global Medical REIT||$8.21 million||23.47||-$6.35 million||($0.27)||-33.00|
Omega Healthcare Investors has higher revenue and earnings than Global Medical REIT. Global Medical REIT is trading at a lower price-to-earnings ratio than Omega Healthcare Investors, indicating that it is currently the more affordable of the two stocks.
Omega Healthcare Investors pays an annual dividend of $2.60 per share and has a dividend yield of 9.7%. Global Medical REIT pays an annual dividend of $0.80 per share and has a dividend yield of 9.0%. Omega Healthcare Investors pays out 317.1% 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 -296.3% of its earnings in the form of a dividend. Omega Healthcare Investors has raised its dividend for 7 consecutive years. Omega Healthcare Investors is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This table compares Omega Healthcare Investors and Global Medical REIT’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Omega Healthcare Investors||17.61%||3.92%||1.82%|
|Global Medical REIT||-19.98%||-2.86%||-1.39%|
Omega Healthcare Investors beats Global Medical REIT on 10 of the 17 factors compared between the two stocks.
About Omega Healthcare Investors
Omega Healthcare Investors, Inc. is a self-administered real estate investment trust (REIT). The Company maintains a portfolio of long-term healthcare facilities and mortgages on healthcare facilities located in the United States and the United Kingdom. It operates through the segment, which consists of investments in healthcare-related real estate properties. It provides lease or mortgage financing to qualified operators of skilled nursing facilities (SNFs) and assisted living facilities (ALFs), independent living facilities, rehabilitation and acute care facilities. Its portfolio consists of long-term leases and mortgage agreements. As of December 31, 2016, its portfolio of investments included 996 healthcare facilities located in 42 states and the United Kingdom and operated by 79 third-party operators. As of December 31, 2016, the Company’s portfolio consisted of 809 SNFs, 101 ALFs, 16 specialty facilities, one medical office building, fixed rate mortgages on 44 SNFs and two ALFs.
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.
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