Keppel REIT (OTCMKTS:KREVF) & Global Medical REIT (NYSE:GMRE) Critical Analysis

Keppel REIT (OTCMKTS:KREVF) and Global Medical REIT (NYSE:GMRE) are both finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, profitability, dividends, valuation, earnings, risk and analyst recommendations.

Insider and Institutional Ownership

57.5% of Global Medical REIT shares are owned by institutional investors. 8.5% of Global Medical REIT shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current recommendations for Keppel REIT and Global Medical REIT, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Keppel REIT	0	1	0	0	2.00
Global Medical REIT	0	3	3	1	2.71

Global Medical REIT has a consensus price target of $42.50, suggesting a potential upside of 32.04%. Given Global Medical REIT’s stronger consensus rating and higher probable upside, analysts plainly believe Global Medical REIT is more favorable than Keppel REIT.

Risk & Volatility

Keppel REIT has a beta of 0.61, suggesting that its share price is 39% less volatile than the S&P 500. Comparatively, Global Medical REIT has a beta of 1.19, suggesting that its share price is 19% more volatile than the S&P 500.

Valuation & Earnings

This table compares Keppel REIT and Global Medical REIT”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Keppel REIT	$195.76 million	15.46	$81.16 million	N/A	N/A
Global Medical REIT	$141.60 million	3.04	$6.63 million	$0.35	91.97

Keppel REIT has higher revenue and earnings than Global Medical REIT.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Keppel REIT	N/A	N/A	N/A
Global Medical REIT	7.32%	2.21%	0.82%

Summary

Global Medical REIT beats Keppel REIT on 10 of the 13 factors compared between the two stocks.

About Keppel REIT

Listed by way of an introduction on 28 April 2006, Keppel REIT is one of Asia's leading real estate investment trusts with a portfolio of prime commercial assets in Asia Pacific's key business districts. Keppel REIT's objective is to generate stable income and sustainable long-term total return for its Unitholders by owning and investing in a portfolio of quality income-producing commercial real estate and real estate-related assets in Asia Pacific. Keppel REIT has a portfolio value of over $9.0 billion, comprising properties in Singapore; the key Australian cities of Sydney, Melbourne and Perth; Seoul, South Korea; as well as Tokyo, Japan. Keppel REIT is managed by Keppel REIT Management Limited and sponsored by Keppel, a global asset manager and operator with strong expertise in sustainability-related solutions spanning the areas of infrastructure, real estate and connectivity.

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.