Global Medical REIT (NYSE:GMRE) versus Sotherly Hotels (NASDAQ:SOHO) Financial Survey

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

Analyst Ratings

This is a summary of current recommendations and price targets for Global Medical REIT and Sotherly Hotels, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Global Medical REIT	0	0	1	0	3.00
Sotherly Hotels	0	1	0	0	2.00

Global Medical REIT presently has a consensus target price of $11.25, suggesting a potential upside of 26.40%. Sotherly Hotels has a consensus target price of $2.25, suggesting a potential upside of 59.57%. Given Sotherly Hotels’ higher probable upside, analysts clearly believe Sotherly Hotels is more favorable than Global Medical REIT.

Earnings and Valuation

This table compares Global Medical REIT and Sotherly Hotels’ gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Global Medical REIT	$141.05 million	4.14	$20.61 million	$0.23	38.70
Sotherly Hotels	$173.84 million	0.16	$3.94 million	($0.21)	-6.71

Global Medical REIT has higher earnings, but lower revenue than Sotherly Hotels. Sotherly Hotels 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.

Insider and Institutional Ownership

57.5% of Global Medical REIT shares are owned by institutional investors. Comparatively, 27.5% of Sotherly Hotels shares are owned by institutional investors. 8.2% of Global Medical REIT shares are owned by insiders. Comparatively, 15.9% of Sotherly Hotels shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Risk & Volatility

Global Medical REIT has a beta of 1.13, suggesting that its share price is 13% more volatile than the S&P 500. Comparatively, Sotherly Hotels has a beta of 1.61, suggesting that its share price is 61% more volatile than the S&P 500.

Profitability

This table compares Global Medical REIT and Sotherly Hotels’ 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%
Sotherly Hotels	2.18%	7.86%	0.97%

Summary

Global Medical REIT beats Sotherly Hotels on 9 of the 14 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 Sotherly Hotels

Sotherly Hotels Inc. is a self-managed and self-administered lodging REIT focused on the acquisition, renovation, upbranding and repositioning of upscale to upper-upscale full-service hotels in the Southern United States. Sotherly may also opportunistically acquire hotels throughout the United States. Currently, the Company's portfolio consists of investments in ten hotel properties, comprising 2,786 rooms, as well as interests in two condominium hotels and their associated rental programs. The Company owns hotels that operate under the Hilton Worldwide and Hyatt Hotels Corporation brands, as well as independent hotels. Sotherly Hotels Inc. was organized in 2004 and is headquartered in Williamsburg, Virginia.