Financial Review: Digital Realty Trust (NYSE:DLR) & Selectis Health (OTCMKTS:GBCS)

Digital Realty Trust (NYSE:DLR) and Selectis Health (OTCMKTS:GBCS) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, profitability, analyst recommendations, institutional ownership, earnings, dividends and risk.

Insider & Institutional Ownership

99.7% of Digital Realty Trust shares are owned by institutional investors. 0.2% of Digital Realty Trust shares are owned by company insiders. Comparatively, 15.2% of Selectis Health 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.

Risk and Volatility

Digital Realty Trust has a beta of 0.59, indicating that its share price is 41% less volatile than the S&P 500. Comparatively, Selectis Health has a beta of -0.28, indicating that its share price is 128% less volatile than the S&P 500.

Profitability

This table compares Digital Realty Trust and Selectis Health’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Digital Realty Trust	21.24%	6.37%	2.72%
Selectis Health	-24.65%	-651.76%	-21.33%

Analyst Recommendations

This is a breakdown of current recommendations for Digital Realty Trust and Selectis Health, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Digital Realty Trust	2	6	10	1	2.53
Selectis Health	0	0	0	0	N/A

Digital Realty Trust presently has a consensus price target of $149.42, suggesting a potential downside of 1.54%. Given Digital Realty Trust’s higher probable upside, equities research analysts plainly believe Digital Realty Trust is more favorable than Selectis Health.

Earnings and Valuation

This table compares Digital Realty Trust and Selectis Health’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Digital Realty Trust	$5.48 billion	8.66	$948.84 million	$3.60	42.16
Selectis Health	$36.78 million	N/A	-$3.97 million	($1.30)	-1.54

Digital Realty Trust has higher revenue and earnings than Selectis Health. Selectis Health is trading at a lower price-to-earnings ratio than Digital Realty Trust, indicating that it is currently the more affordable of the two stocks.

Summary

Digital Realty Trust beats Selectis Health on 12 of the 13 factors compared between the two stocks.

About Digital Realty Trust

Digital Realty brings companies and data together by delivering the full spectrum of data center, colocation, and interconnection solutions. PlatformDIGITAL, the company's global data center platform, provides customers with a secure data meeting place and a proven Pervasive Datacenter Architecture (PDx) solution methodology for powering innovation and efficiently managing Data Gravity challenges. Digital Realty gives its customers access to the connected data communities that matter to them with a global data center footprint of 300+ facilities in 50+ metros across 25+ countries on six continents.

About Selectis Health

Selectis Health owns and/or operates healthcare facilities in Arkansas, Georgia, Ohio, and Oklahoma, providing a wide array of living services, speech, occupational, physical therapies, social services, and other rehabilitation and healthcare services. Selectis focuses on building strategic relationships with local communities in which its partnership can improve the quality of care for facility residents. With its focused growth strategy, Selectis intends to deepen its American Southcentral and Southeastern market presence to better serve the aging population along a full continuum of care.