Contrasting Global Medical REIT (NYSE:GMRE) & PennyMac Mortgage Investment Trust (NYSE:PMT)

Global Medical REIT (NYSE:GMRE) and PennyMac Mortgage Investment Trust (NYSE:PMT) are both small-cap finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, dividends, valuation and analyst recommendations.

Analyst Ratings

This is a summary of current ratings and recommmendations for Global Medical REIT and PennyMac Mortgage Investment Trust, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Global Medical REIT 0 1 4 0 2.80
PennyMac Mortgage Investment Trust 0 2 5 0 2.71

Global Medical REIT presently has a consensus price target of $10.61, indicating a potential downside of 1.98%. PennyMac Mortgage Investment Trust has a consensus price target of $21.86, indicating a potential upside of 1.10%. Given PennyMac Mortgage Investment Trust’s higher possible upside, analysts clearly believe PennyMac Mortgage Investment Trust is more favorable than Global Medical REIT.

Institutional & Insider Ownership

52.0% of Global Medical REIT shares are owned by institutional investors. Comparatively, 71.6% of PennyMac Mortgage Investment Trust shares are owned by institutional investors. 11.7% of Global Medical REIT shares are owned by company insiders. Comparatively, 2.5% of PennyMac Mortgage Investment Trust 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.

Valuation & Earnings

This table compares Global Medical REIT and PennyMac Mortgage Investment Trust’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Global Medical REIT $53.19 million 6.83 $13.49 million $0.78 13.87
PennyMac Mortgage Investment Trust $351.07 million 4.21 $152.80 million $1.99 10.86

PennyMac Mortgage Investment Trust has higher revenue and earnings than Global Medical REIT. PennyMac Mortgage Investment 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.

Profitability

This table compares Global Medical REIT and PennyMac Mortgage Investment Trust’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Global Medical REIT 21.38% 5.52% 1.95%
PennyMac Mortgage Investment Trust 46.63% 13.71% 2.43%

Dividends

Global Medical REIT pays an annual dividend of $0.80 per share and has a dividend yield of 7.4%. PennyMac Mortgage Investment Trust pays an annual dividend of $1.88 per share and has a dividend yield of 8.7%. Global Medical REIT pays out 102.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. PennyMac Mortgage Investment Trust pays out 94.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. PennyMac Mortgage Investment Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.

Volatility & Risk

Global Medical REIT has a beta of 0.46, indicating that its share price is 54% less volatile than the S&P 500. Comparatively, PennyMac Mortgage Investment Trust has a beta of 0.6, indicating that its share price is 40% less volatile than the S&P 500.

Summary

PennyMac Mortgage Investment Trust beats Global Medical REIT on 12 of the 16 factors compared between the two stocks.

Global Medical REIT Company Profile

Global Medical REIT, Inc. engages in the acquisition of purpose-built healthcare facilities and leasing of those properties to strong healthcare systems and physician groups. The company was founded on March 18, 2011 and is headquartered in Bethesda, MD.

PennyMac Mortgage Investment Trust Company Profile

PennyMac Mortgage Investment Trust, a specialty finance company, invests primarily in residential mortgage loans and mortgage-related assets in the United States. The company's Correspondent Production segment engages in purchasing, pooling, and reselling newly originated prime credit mortgage loans directly or in the form of mortgage-backed securities (MBS). Its Credit Sensitive Strategies segment invests in credit risk transfer (CRT) agreements, firm commitment to purchase CRT securities, distressed mortgage loans, real estate acquired in settlement of mortgage loans, non-Agency subordinated bonds, and small balance commercial real estate mortgage loans. The company's Interest Rate Sensitive Strategies segment engages in investing in mortgage servicing rights, excess servicing spreads, and agency and senior non-agency MBS; and interest rate hedging activities related to indebtedness. PNMAC Capital Management, LLC acts as the manager of PennyMac Mortgage Investment Trust. The company qualifies as a real estate investment trust for federal income tax purposes. It generally would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. The company was founded in 2009 and is based in Westlake Village, California.

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