Contrasting Digital Realty Trust (NYSE:DLR) & Selectis Health (OTCMKTS:GBCS)

Selectis Health (OTCMKTS:GBCS) and Digital Realty Trust (NYSE:DLR) are both medical companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, earnings, profitability, analyst recommendations, institutional ownership, valuation and dividends.

Institutional and Insider Ownership

99.7% of Digital Realty Trust shares are owned by institutional investors. 15.2% of Selectis Health shares are owned by company insiders. Comparatively, 0.2% of Digital Realty Trust shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Selectis Health and Digital Realty Trust’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Selectis Health	$36.78 million	N/A	-$3.97 million	($1.30)	-1.54
Digital Realty Trust	$5.48 billion	8.68	$948.84 million	$3.60	42.26

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

Profitability

This table compares Selectis Health and Digital Realty Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Selectis Health	-24.65%	-651.76%	-21.33%
Digital Realty Trust	21.24%	6.37%	2.72%

Analyst Ratings

This is a summary of recent ratings and price targets for Selectis Health and Digital Realty Trust, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Selectis Health	0	0	0	0	N/A
Digital Realty Trust	2	6	10	1	2.53

Digital Realty Trust has a consensus target price of $149.42, suggesting a potential downside of 1.78%. Given Digital Realty Trust’s higher possible upside, analysts clearly believe Digital Realty Trust is more favorable than Selectis Health.

Risk and Volatility

Selectis Health has a beta of -0.28, meaning that its stock price is 128% less volatile than the S&P 500. Comparatively, Digital Realty Trust has a beta of 0.59, meaning that its stock price is 41% less volatile than the S&P 500.

Summary

Digital Realty Trust beats Selectis Health on 11 of the 12 factors compared between the two stocks.

About Selectis Health

Selectis Health owns and/or operates healthcare facilities in Arkansas, Georgia, Ohio, and Oklahoma, providing a wide array of living services, speech, occupational, physical therapies, social services, and other rehabilitation and healthcare services. Selectis focuses on building strategic relationships with local communities in which its partnership can improve the quality of care for facility residents. With its focused growth strategy, Selectis intends to deepen its American Southcentral and Southeastern market presence to better serve the aging population along a full continuum of care.

About Digital Realty Trust

Digital Realty brings companies and data together by delivering the full spectrum of data center, colocation, and interconnection solutions. PlatformDIGITAL, the company's global data center platform, provides customers with a secure data meeting place and a proven Pervasive Datacenter Architecture (PDx) solution methodology for powering innovation and efficiently managing Data Gravity challenges. Digital Realty gives its customers access to the connected data communities that matter to them with a global data center footprint of 300+ facilities in 50+ metros across 25+ countries on six continents.