Head to Head Analysis: Global Medical REIT (NYSE:GMRE) vs. Clipper Realty (NYSE:CLPR)

Clipper Realty (NYSE:CLPR) and Global Medical REIT (NYSE:GMRE) are both small-cap finance companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, valuation, risk, profitability and institutional ownership.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Clipper Realty and Global Medical REIT, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Clipper Realty	1	1	0	0	1.50
Global Medical REIT	0	0	1	0	3.00

Clipper Realty currently has a consensus price target of $8.00, indicating a potential upside of 105.66%. Global Medical REIT has a consensus price target of $11.25, indicating a potential upside of 16.22%. Given Clipper Realty’s higher possible upside, equities analysts plainly believe Clipper Realty is more favorable than Global Medical REIT.

Earnings & Valuation

This table compares Clipper Realty and Global Medical REIT’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Clipper Realty	$138.21 million	0.45	-$5.90 million	($0.35)	-11.11
Global Medical REIT	$139.80 million	4.54	$20.61 million	$0.23	42.09

Global Medical REIT has higher revenue and earnings than Clipper Realty. Clipper Realty 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Clipper Realty	-3.01%	-41.07%	-0.34%
Global Medical REIT	13.77%	3.54%	1.50%

Volatility and Risk

Clipper Realty has a beta of 1.32, meaning that its stock price is 32% more volatile than the S&P 500. Comparatively, Global Medical REIT has a beta of 1.23, meaning that its stock price is 23% more volatile than the S&P 500.

Insider and Institutional Ownership

37.6% of Clipper Realty shares are held by institutional investors. Comparatively, 57.5% of Global Medical REIT shares are held by institutional investors. 52.3% of Clipper Realty shares are held by insiders. Comparatively, 8.2% of Global Medical REIT shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Dividends

Clipper Realty pays an annual dividend of $0.38 per share and has a dividend yield of 9.8%. Global Medical REIT pays an annual dividend of $0.84 per share and has a dividend yield of 8.7%. Clipper Realty pays out -108.6% of its earnings in the form of a dividend. Global Medical REIT pays out 365.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Clipper Realty is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Global Medical REIT beats Clipper Realty on 11 of the 16 factors compared between the two stocks.

About Clipper Realty

Clipper Realty Inc. (NYSE: CLPR) is a self-administered and self-managed real estate company that acquires, owns, manages, operates, and repositions multifamily residential and commercial properties in the New York metropolitan area, with a portfolio in Manhattan and Brooklyn.

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.