Global Healthcare REIT (OTCMKTS:GBCS) and Diversified Healthcare Trust (NASDAQ:DHC) are both small-cap consumer discretionary companies, but which is the superior business? We will contrast the two companies based on the strength of their profitability, dividends, analyst recommendations, earnings, risk, valuation and institutional ownership.
This table compares Global Healthcare REIT and Diversified Healthcare Trust’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Global Healthcare REIT||-12.44%||-353.19%||-2.17%|
|Diversified Healthcare Trust||-7.14%||-3.33%||-1.41%|
Earnings and Valuation
This table compares Global Healthcare REIT and Diversified Healthcare Trust’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Global Healthcare REIT||$6.93 million||0.51||-$860,000.00||N/A||N/A|
|Diversified Healthcare Trust||$1.04 billion||0.91||-$88.23 million||$1.31||3.03|
Global Healthcare REIT has higher earnings, but lower revenue than Diversified Healthcare Trust.
Risk & Volatility
Global Healthcare REIT has a beta of 0.41, suggesting that its share price is 59% less volatile than the S&P 500. Comparatively, Diversified Healthcare Trust has a beta of 0.86, suggesting that its share price is 14% less volatile than the S&P 500.
This is a summary of recent recommendations for Global Healthcare REIT and Diversified Healthcare Trust, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Global Healthcare REIT||0||0||0||0||N/A|
|Diversified Healthcare Trust||2||4||1||0||1.86|
Diversified Healthcare Trust has a consensus price target of $4.19, suggesting a potential upside of 5.61%. Given Diversified Healthcare Trust’s higher probable upside, analysts plainly believe Diversified Healthcare Trust is more favorable than Global Healthcare REIT.
Insider & Institutional Ownership
75.3% of Diversified Healthcare Trust shares are held by institutional investors. 6.8% of Global Healthcare REIT shares are held by company insiders. Comparatively, 1.2% of Diversified Healthcare Trust shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Diversified Healthcare Trust beats Global Healthcare REIT on 9 of the 12 factors compared between the two stocks.
About Global Healthcare REIT
Global Healthcare REIT, Inc. (the Company or Global) was organized with the intent of operating as a real estate investment trust (REIT) for the purpose of investing in real estate and other assets related to the healthcare industry. Prior to the Company changing its name to Global Healthcare REIT, Inc. on September 30, 2013, the Company was known as Global Casinos, Inc. Global Casinos, Inc. operated two gaming casinos which were split-off and sold on September 30, 2013. Simultaneous with the split-off and sale of the gaming operations, the Company acquired West Paces Ferry Healthcare REIT, Inc. (WPF) in a transaction accounted for as a reverse acquisition whereby WPF was deemed to be the accounting acquirer. The Company intends to make a REIT election under sections 856 through 859 of the Internal Revenue Code of 1986, as amended. Such election will be made by the Board of Directors at such time as the Board determines that we qualify as a REIT under applicable provisions of the Internal Revenue Code and that such election is in the best interest of our stockholders. The Company acquires, develops, leases, manages and disposes of healthcare real estate, and provides financing to healthcare providers. As of December 31, 2018, the Company owned eleven healthcare properties which are leased to third-party operators under triple-net operating terms.
About Diversified Healthcare Trust
Diversified Healthcare Trust (Nasdaq: DHC) is a healthcare Real Estate Investment Trust, or REIT, which owns office buildings leased to medical providers, medical related businesses, clinics and biotech laboratory tenants; senior living communities; as well as wellness centers.
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