Global Healthcare REIT (OTCMKTS:GBCS) and Colony Capital (NYSE:CLNY) are both consumer discretionary companies, but which is the better business? We will compare the two companies based on the strength of their analyst recommendations, risk, earnings, profitability, dividends, valuation and institutional ownership.
Earnings and Valuation
This table compares Global Healthcare REIT and Colony Capital’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Global Healthcare REIT||$3.62 million||2.24||-$2.99 million||N/A||N/A|
|Colony Capital||$2.67 billion||0.92||-$519.61 million||$0.62||8.23|
Volatility and Risk
Global Healthcare REIT has a beta of 0.92, indicating that its share price is 8% less volatile than the S&P 500. Comparatively, Colony Capital has a beta of 1.57, indicating that its share price is 57% more volatile than the S&P 500.
This is a breakdown of recent ratings and price targets for Global Healthcare REIT and Colony Capital, 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|
Colony Capital has a consensus price target of $9.00, suggesting a potential upside of 76.47%. Given Colony Capital’s higher possible upside, analysts clearly believe Colony Capital is more favorable than Global Healthcare REIT.
Institutional and Insider Ownership
83.3% of Colony Capital shares are owned by institutional investors. 6.8% of Global Healthcare REIT shares are owned by company insiders. Comparatively, 7.0% of Colony Capital shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
This table compares Global Healthcare REIT and Colony Capital’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Global Healthcare REIT||-80.82%||-243.43%||-7.27%|
Colony Capital pays an annual dividend of $0.44 per share and has a dividend yield of 8.6%. Global Healthcare REIT does not pay a dividend. Colony Capital pays out 71.0% of its earnings in the form of a dividend.
Colony Capital beats Global Healthcare REIT on 10 of the 13 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. The Company acquires, develops, leases, manages and disposes of healthcare real estate, and provides financing to healthcare providers. As of September 30, 2018, the Company owned eleven healthcare properties which are leased to third-party operators under triple-net operating terms.
About Colony Capital
Colony Capital, Inc. (NYSE: CLNY) is a leading global investment management firm with assets under management of $43 billion. The Company manages capital on behalf of its stockholders, as well as institutional and retail investors in private funds, non-traded and traded real estate investment trusts and registered investment companies. The Company has significant holdings in: (a) the healthcare, industrial and hospitality property sectors; (b) Colony Credit Real Estate, Inc. (NYSE: CLNC) and NorthStar Realty Europe Corp. (NYSE: NRE), which are both externally managed by subsidiaries of the Company; and (c) various other equity and debt investments. The Company is headquartered in Los Angeles with key offices in New York, Paris and London, and has over 400 employees across 17 locations in ten countries.
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