Financial Review: Four Corners Property Trust (NYSE:FCPT) versus Global Medical REIT (NYSE:GMRE)

Four Corners Property Trust (NYSE:FCPT) and Global Medical REIT (NYSE:GMRE) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, valuation, analyst recommendations, risk, profitability, institutional ownership and earnings.

Earnings & Valuation

This table compares Four Corners Property Trust and Global Medical REIT’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Four Corners Property Trust	$250.61 million	9.03	$95.34 million	$1.07	23.00
Global Medical REIT	$141.05 million	4.15	$20.61 million	$0.23	38.83

Four Corners Property Trust has higher revenue and earnings than Global Medical REIT. Four Corners Property Trust 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.

Volatility & Risk

Four Corners Property Trust has a beta of 1.05, suggesting that its stock price is 5% more volatile than the S&P 500. Comparatively, Global Medical REIT has a beta of 1.21, suggesting that its stock price is 21% more volatile than the S&P 500.

Dividends

Four Corners Property Trust pays an annual dividend of $1.38 per share and has a dividend yield of 5.6%. Global Medical REIT pays an annual dividend of $0.84 per share and has a dividend yield of 9.4%. Four Corners Property Trust pays out 129.0% 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 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.

Profitability

This table compares Four Corners Property Trust and Global Medical REIT’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Four Corners Property Trust	37.44%	7.65%	3.97%
Global Medical REIT	13.77%	3.54%	1.50%

Insider and Institutional Ownership

98.7% of Four Corners Property Trust shares are owned by institutional investors. Comparatively, 57.5% of Global Medical REIT shares are owned by institutional investors. 1.2% of Four Corners Property Trust shares are owned by company insiders. Comparatively, 8.2% of Global Medical REIT shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of recent recommendations and price targets for Four Corners Property Trust and Global Medical REIT, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Four Corners Property Trust	0	0	2	0	3.00
Global Medical REIT	0	0	1	0	3.00

Four Corners Property Trust currently has a consensus price target of $26.33, indicating a potential upside of 7.02%. Global Medical REIT has a consensus price target of $11.25, indicating a potential upside of 25.98%. Given Global Medical REIT’s higher possible upside, analysts clearly believe Global Medical REIT is more favorable than Four Corners Property Trust.

Summary

Four Corners Property Trust beats Global Medical REIT on 10 of the 15 factors compared between the two stocks.

About Four Corners Property Trust

FCPT, headquartered in Mill Valley, CA, is a real estate investment trust primarily engaged in the ownership, acquisition and leasing of restaurant and retail properties. The Company seeks to grow its portfolio by acquiring additional real estate to lease, on a net basis, for use in the restaurant and retail industries.

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.