Ready Capital (NYSE:RC – Get Free Report) and Global Medical REIT (NYSE:GMRE – Get Free Report) are both small-cap finance companies, but which is the better business? We will contrast the two companies based on the strength of their analyst recommendations, earnings, risk, valuation, profitability, institutional ownership and dividends.
Dividends
Ready Capital pays an annual dividend of $1.00 per share and has a dividend yield of 14.9%. Global Medical REIT pays an annual dividend of $0.84 per share and has a dividend yield of 10.2%. Ready Capital pays out -142.9% of its earnings in the form of a dividend. Global Medical REIT pays out -4,197.9% 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.
Risk and Volatility
Ready Capital has a beta of 1.43, suggesting that its share price is 43% more volatile than the S&P 500. Comparatively, Global Medical REIT has a beta of 1.24, suggesting that its share price is 24% more volatile than the S&P 500.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Ready Capital | 1 | 6 | 1 | 0 | 2.00 |
| Global Medical REIT | 0 | 0 | 3 | 0 | 3.00 |
Ready Capital currently has a consensus price target of $8.61, indicating a potential upside of 28.18%. Global Medical REIT has a consensus price target of $11.25, indicating a potential upside of 36.23%. Given Global Medical REIT’s stronger consensus rating and higher possible upside, analysts plainly believe Global Medical REIT is more favorable than Ready Capital.
Insider and Institutional Ownership
55.9% of Ready Capital shares are owned by institutional investors. Comparatively, 57.5% of Global Medical REIT shares are owned by institutional investors. 1.1% of Ready Capital 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 stock will outperform the market over the long term.
Profitability
This table compares Ready Capital and Global Medical REIT’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Ready Capital | -11.65% | 7.53% | 1.49% |
| Global Medical REIT | 3.23% | 0.86% | 0.35% |
Valuation and Earnings
This table compares Ready Capital 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 | |
| Ready Capital | $945.81 million | 1.20 | $339.45 million | ($0.70) | -9.59 |
| Global Medical REIT | $141.05 million | 3.91 | $20.61 million | ($0.02) | -412.69 |
Ready Capital has higher revenue and earnings than Global Medical REIT. Global Medical REIT is trading at a lower price-to-earnings ratio than Ready Capital, indicating that it is currently the more affordable of the two stocks.
Summary
Global Medical REIT beats Ready Capital on 9 of the 15 factors compared between the two stocks.
About Ready Capital
Ready Capital Corporation operates as a real estate finance company in the United States. It operates through two segments: LMM Commercial Real Estate and Small Business Lending. The company originates, acquires, finances, and services lower-to-middle-market (LLM) commercial real estate loans, small business administration (SBA) loans, residential mortgage loans, construction loans, and mortgage-backed securities collateralized primarily by LLM loans, or other real estate-related investments. The LMM Commercial Real Estate segment originates LLM loans across the full life-cycle of an LLM property, including construction, bridge, stabilized, and agency loan origination channels. The Small Business Lending segment acquires, originates, and services owner-occupied loans guaranteed by the SBA under its SBA Section 7(a) Program; and acquires purchased future receivables. The company has elected to be taxed as a real estate investment trust (REIT) and 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 formerly known as Sutherland Asset Management Corporation and changed its name to Ready Capital Corporation in September 2018. Ready Capital Corporation was founded in 2007 and is headquartered in New York, New York.
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.
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