Head to Head Survey: Global Medical REIT (NYSE:GMRE) & Sotherly Hotels (NASDAQ:SOHO)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Sotherly Hotels	2.18%	7.86%	0.97%
Global Medical REIT	13.77%	3.54%	1.50%

Insider & Institutional Ownership

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

Risk & Volatility

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

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Sotherly Hotels and Global Medical REIT, as provided by MarketBeat.

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

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

Valuation and Earnings

This table compares Sotherly Hotels 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
Sotherly Hotels	$173.84 million	0.16	$3.94 million	($0.21)	-6.71
Global Medical REIT	$141.05 million	4.14	$20.61 million	$0.23	38.70

Global Medical REIT has lower revenue, but higher earnings 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.

Summary

Global Medical REIT beats Sotherly Hotels on 9 of the 14 factors compared between the two stocks.

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.

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.