Critical Survey: Clipper Realty (NYSE:CLPR) vs. Global Medical REIT (NYSE:GMRE)

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

Insider and Institutional Ownership

57.5% of Global Medical REIT shares are held by institutional investors. Comparatively, 37.6% of Clipper Realty shares are held by institutional investors. 8.2% of Global Medical REIT shares are held by insiders. Comparatively, 52.3% of Clipper Realty shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Dividends

Global Medical REIT pays an annual dividend of $0.84 per share and has a dividend yield of 8.7%. Clipper Realty pays an annual dividend of $0.38 per share and has a dividend yield of 9.7%. 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. Clipper Realty pays out -108.6% of its earnings in the form of a dividend. Clipper Realty is clearly the better dividend stock, given its higher yield and lower payout ratio.

Volatility and Risk

Global Medical REIT has a beta of 1.23, indicating that its stock price is 23% more volatile than the S&P 500. Comparatively, Clipper Realty has a beta of 1.32, indicating that its stock price is 32% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Global Medical REIT	13.77%	3.54%	1.50%
Clipper Realty	-3.01%	-41.07%	-0.34%

Valuation and Earnings

This table compares Global Medical REIT and Clipper Realty’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Global Medical REIT	$141.05 million	4.48	$20.61 million	$0.23	41.87
Clipper Realty	$138.21 million	0.46	-$5.90 million	($0.35)	-11.23

Global Medical REIT has higher revenue and earnings than Clipper Realty. Clipper Realty 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.

Analyst Ratings

This is a summary of current recommendations and price targets for Global Medical REIT and Clipper Realty, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Global Medical REIT	0	0	1	0	3.00
Clipper Realty	1	1	0	0	1.50

Global Medical REIT currently has a consensus target price of $11.25, indicating a potential upside of 16.82%. Clipper Realty has a consensus target price of $8.00, indicating a potential upside of 103.56%. Given Clipper Realty’s higher possible upside, analysts plainly believe Clipper Realty is more favorable than Global Medical REIT.

Summary

Global Medical REIT beats Clipper Realty on 11 of the 16 factors compared between the two stocks.

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.

About Clipper Realty

Clipper Realty Inc. (NYSE: CLPR) is a self-administered and self-managed real estate company that acquires, owns, manages, operates, and repositions multifamily residential and commercial properties in the New York metropolitan area, with a portfolio in Manhattan and Brooklyn.