Analyzing Acadia Realty Trust (NYSE:AKR) & Global Medical REIT (NYSE:GMRE)

Acadia Realty Trust (NYSE:AKR) and Global Medical REIT (NYSE:GMRE) are both small-cap finance companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, earnings, profitability, valuation, analyst recommendations, institutional ownership and risk.

Dividends

Acadia Realty Trust pays an annual dividend of $0.72 per share and has a dividend yield of 4.1%. Global Medical REIT pays an annual dividend of $0.84 per share and has a dividend yield of 9.5%. Acadia Realty Trust pays out 900.0% 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. Global Medical REIT is clearly the better dividend stock, given its higher yield and lower payout ratio.

Institutional and Insider Ownership

97.7% of Acadia Realty Trust shares are owned by institutional investors. Comparatively, 57.5% of Global Medical REIT shares are owned by institutional investors. 2.8% of Acadia Realty 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 large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Acadia Realty Trust and Global Medical REIT, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Acadia Realty Trust	0	2	2	0	2.50
Global Medical REIT	0	0	1	0	3.00

Acadia Realty Trust currently has a consensus target price of $18.50, suggesting a potential upside of 6.63%. Global Medical REIT has a consensus target price of $11.25, suggesting a potential upside of 27.70%. Given Global Medical REIT’s stronger consensus rating and higher possible upside, analysts plainly believe Global Medical REIT is more favorable than Acadia Realty Trust.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Acadia Realty Trust	2.38%	0.39%	0.19%
Global Medical REIT	13.77%	3.54%	1.50%

Risk and Volatility

Acadia Realty Trust has a beta of 1.44, suggesting that its share price is 44% more volatile than the S&P 500. Comparatively, Global Medical REIT has a beta of 1.21, suggesting that its share price is 21% more volatile than the S&P 500.

Valuation and Earnings

This table compares Acadia Realty Trust and Global Medical REIT’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Acadia Realty Trust	$338.69 million	5.29	$19.87 million	$0.08	216.88
Global Medical REIT	$141.05 million	4.10	$20.61 million	$0.23	38.30

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

Summary

Global Medical REIT beats Acadia Realty Trust on 10 of the 16 factors compared between the two stocks.

About Acadia Realty Trust

Acadia Realty Trust is an equity real estate investment trust focused on delivering long-term, profitable growth via its dual Core Portfolio and Fund operating platforms and its disciplined, location-driven investment strategy. Acadia Realty Trust is accomplishing this goal by building a best-in-class core real estate portfolio with meaningful concentrations of assets in the nation's most dynamic corridors; making profitable opportunistic and value-add investments through its series of discretionary, institutional funds; and maintaining a strong balance sheet.

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.