Reviewing Global Medical REIT (NYSE:GMRE) & Orion Office REIT (NYSE:ONL)

Orion Office REIT (NYSE:ONL) and Global Medical REIT (NYSE:GMRE) are both small-cap finance companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, earnings, risk, dividends, valuation, analyst recommendations and profitability.

Risk and Volatility

Orion Office REIT has a beta of 1.41, suggesting that its stock price is 41% more volatile than the S&P 500. Comparatively, Global Medical REIT has a beta of 1.17, suggesting that its stock price is 17% more volatile than the S&P 500.

Valuation & Earnings

This table compares Orion Office REIT 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
Orion Office REIT	$164.86 million	0.74	-$103.01 million	($2.44)	-0.89
Global Medical REIT	$138.78 million	3.22	$6.63 million	($0.25)	-133.10

Global Medical REIT has lower revenue, but higher earnings than Orion Office REIT. Global Medical REIT is trading at a lower price-to-earnings ratio than Orion Office REIT, indicating that it is currently the more affordable of the two stocks.

Dividends

Orion Office REIT pays an annual dividend of $0.08 per share and has a dividend yield of 3.7%. Global Medical REIT pays an annual dividend of $3.00 per share and has a dividend yield of 9.0%. Orion Office REIT pays out -3.3% of its earnings in the form of a dividend. Global Medical REIT pays out -1,200.0% 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. Global Medical REIT is clearly the better dividend stock, given its higher yield and lower payout ratio.

Institutional & Insider Ownership

80.0% of Orion Office REIT shares are held by institutional investors. Comparatively, 57.5% of Global Medical REIT shares are held by institutional investors. 0.8% of Orion Office REIT shares are held by insiders. Comparatively, 8.5% of Global Medical REIT shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Orion Office REIT	-90.36%	-18.73%	-10.53%
Global Medical REIT	0.79%	0.25%	0.09%

Analyst Ratings

This is a breakdown of recent recommendations for Orion Office REIT and Global Medical REIT, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Orion Office REIT	1	1	0	0	1.50
Global Medical REIT	0	3	3	1	2.71

Global Medical REIT has a consensus price target of $41.50, suggesting a potential upside of 24.72%. Given Global Medical REIT’s stronger consensus rating and higher possible upside, analysts clearly believe Global Medical REIT is more favorable than Orion Office REIT.

Summary

Global Medical REIT beats Orion Office REIT on 13 of the 17 factors compared between the two stocks.

About Orion Office REIT

Orion Office REIT specializes in the ownership, acquisition and management of a diversified portfolio of mission-critical and corporate headquarters office buildings in high-quality suburban markets across the U.S. The portfolio is leased primarily on a single-tenant net lease basis to creditworthy tenants. The company's team of experienced industry leaders employs a proven, cycle-tested investment evaluation framework which serves as the lens through which capital allocation decisions are made for the current portfolio and future acquisitions.

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.