Critical Review: Global Medical REIT (NYSE:GMRE) & Peakstone Realty Trust (NYSE:PKST)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Peakstone Realty Trust	-189.03%	-39.44%	-16.55%
Global Medical REIT	0.79%	0.25%	0.09%

Analyst Ratings

This is a summary of recent ratings for Peakstone Realty Trust and Global Medical REIT, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Peakstone Realty Trust	1	3	0	0	1.75
Global Medical REIT	0	3	2	1	2.67

Peakstone Realty Trust presently has a consensus price target of $21.00, indicating a potential upside of 0.86%. Global Medical REIT has a consensus price target of $42.00, indicating a potential upside of 16.80%. Given Global Medical REIT’s stronger consensus rating and higher possible upside, analysts clearly believe Global Medical REIT is more favorable than Peakstone Realty Trust.

Institutional and Insider Ownership

39.0% of Peakstone Realty Trust shares are owned by institutional investors. Comparatively, 57.5% of Global Medical REIT shares are owned by institutional investors. 0.8% of Peakstone Realty Trust shares are owned by insiders. Comparatively, 8.5% of Global Medical REIT shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Volatility and Risk

Peakstone Realty Trust has a beta of 1.46, indicating that its share price is 46% more volatile than the S&P 500. Comparatively, Global Medical REIT has a beta of 1.18, indicating that its share price is 18% more volatile than the S&P 500.

Dividends

Peakstone Realty Trust pays an annual dividend of $0.40 per share and has a dividend yield of 1.9%. Global Medical REIT pays an annual dividend of $3.00 per share and has a dividend yield of 8.3%. Peakstone Realty Trust pays out -4.8% 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. Peakstone Realty Trust has raised its dividend for 1 consecutive years. Global Medical REIT is clearly the better dividend stock, given its higher yield and lower payout ratio.

Valuation & Earnings

This table compares Peakstone Realty Trust and Global Medical REIT”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Peakstone Realty Trust	$105.98 million	7.30	-$307.71 million	($8.39)	-2.48
Global Medical REIT	$138.78 million	3.47	$6.63 million	($0.25)	-143.84

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

Summary

Global Medical REIT beats Peakstone Realty Trust on 14 of the 18 factors compared between the two stocks.

About Peakstone Realty Trust

Peakstone Realty Trust (NYSE: PKST) is an internally managed, real estate investment trust (REIT) that owns and operates a high-quality, newer-vintage portfolio of predominantly single-tenant industrial and office properties. These assets are generally leased to creditworthy tenants under long-term net lease agreements with contractual rent escalations. As of March 31, 2023, Peakstone's wholly-owned portfolio consists of 19 million square feet across 24 states in primarily high-growth, strategic coastal and sunbelt markets.

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.