Global Medical REIT (NYSE:XRN – Get Free Report) and SL Green Realty (NYSE:SLG – Get Free Report) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, analyst recommendations, valuation, institutional ownership, dividends, risk and profitability.
Risk and Volatility
Global Medical REIT has a beta of 1.11, meaning that its share price is 11% more volatile than the S&P 500. Comparatively, SL Green Realty has a beta of 1.6, meaning that its share price is 60% more volatile than the S&P 500.
Profitability
This table compares Global Medical REIT and SL Green Realty’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Global Medical REIT | -6.06% | -2.19% | -0.73% |
| SL Green Realty | -15.77% | -4.06% | -1.42% |
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Global Medical REIT | $148.21 million | 3.04 | -$5.84 million | ($1.11) | -30.70 |
| SL Green Realty | $1.00 billion | 3.06 | -$88.28 million | ($2.51) | -17.13 |
Global Medical REIT has higher earnings, but lower revenue than SL Green Realty. Global Medical REIT is trading at a lower price-to-earnings ratio than SL Green Realty, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
57.5% of Global Medical REIT shares are held by institutional investors. Comparatively, 90.0% of SL Green Realty shares are held by institutional investors. 8.9% of Global Medical REIT shares are held by company insiders. Comparatively, 5.0% of SL Green Realty shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Dividends
Global Medical REIT pays an annual dividend of $3.00 per share and has a dividend yield of 8.8%. SL Green Realty pays an annual dividend of $2.47 per share and has a dividend yield of 5.7%. Global Medical REIT pays out -270.3% of its earnings in the form of a dividend. SL Green Realty pays out -98.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. SL Green Realty has raised its dividend for 1 consecutive years. Global Medical REIT is clearly the better dividend stock, given its higher yield and lower payout ratio.
Analyst Ratings
This is a breakdown of current ratings and recommmendations for Global Medical REIT and SL Green Realty, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Global Medical REIT | 1 | 3 | 2 | 1 | 2.43 |
| SL Green Realty | 2 | 9 | 8 | 0 | 2.32 |
Global Medical REIT presently has a consensus price target of $39.50, suggesting a potential upside of 15.90%. SL Green Realty has a consensus price target of $51.15, suggesting a potential upside of 18.97%. Given SL Green Realty’s higher probable upside, analysts plainly believe SL Green Realty is more favorable than Global Medical REIT.
Summary
Global Medical REIT beats SL Green Realty on 10 of the 18 factors compared between the two stocks.
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.
About SL Green Realty
3SL Green Realty Corp., Manhattan’s largest office landlord, is a fully integrated real estate investment trust, or REIT, that is focused primarily on acquiring, managing and maximizing value of Manhattan commercial properties. As of June 30, 2022, SL Green held interests in 64 buildings totaling 34.4 million square feet. This included ownership interests in 26.3 million square feet of Manhattan buildings and 7.2 million square feet securing debt and preferred equity investments.
Receive News & Ratings for Global Medical REIT Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Global Medical REIT and related companies with MarketBeat.com's FREE daily email newsletter.
