Global Net Lease (NYSE:GNL – Get Free Report) and Net Lease Office Properties (NYSE:NLOP – Get Free Report) are both small-cap real estate companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, risk, analyst recommendations, institutional ownership, profitability, valuation and earnings.
Valuation & Earnings
This table compares Global Net Lease and Net Lease Office Properties”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Global Net Lease | $495.29 million | 3.86 | -$225.46 million | ($0.28) | -32.34 |
| Net Lease Office Properties | $75.91 million | 2.11 | -$145.26 million | ($3.06) | -3.54 |
Profitability
This table compares Global Net Lease and Net Lease Office Properties’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Global Net Lease | -2.94% | -1.00% | -0.37% |
| Net Lease Office Properties | -59.82% | -16.92% | -12.66% |
Volatility & Risk
Global Net Lease has a beta of 1.04, indicating that its stock price is 4% more volatile than the S&P 500. Comparatively, Net Lease Office Properties has a beta of 0.56, indicating that its stock price is 44% less volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of current recommendations for Global Net Lease and Net Lease Office Properties, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Global Net Lease | 0 | 1 | 3 | 1 | 3.00 |
| Net Lease Office Properties | 1 | 0 | 0 | 0 | 1.00 |
Global Net Lease currently has a consensus target price of $10.25, indicating a potential upside of 13.20%. Given Global Net Lease’s stronger consensus rating and higher possible upside, analysts plainly believe Global Net Lease is more favorable than Net Lease Office Properties.
Dividends
Global Net Lease pays an annual dividend of $0.76 per share and has a dividend yield of 8.4%. Net Lease Office Properties pays an annual dividend of $0.34 per share and has a dividend yield of 3.1%. Global Net Lease pays out -271.4% of its earnings in the form of a dividend. Net Lease Office Properties pays out -11.1% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Global Net Lease is clearly the better dividend stock, given its higher yield and lower payout ratio.
Insider & Institutional Ownership
61.2% of Global Net Lease shares are held by institutional investors. Comparatively, 58.3% of Net Lease Office Properties shares are held by institutional investors. 0.6% of Global Net Lease shares are held by company insiders. Comparatively, 0.7% of Net Lease Office Properties shares are held 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.
Summary
Global Net Lease beats Net Lease Office Properties on 14 of the 17 factors compared between the two stocks.
About Global Net Lease
Global Net Lease, Inc. (NYSE: GNL) is a publicly traded real estate investment trust listed on the NYSE. The firm focused on acquiring a diversified global portfolio of commercial properties, with an emphasis on sale-leaseback transactions involving single tenant, mission critical income producing net-leased assets across the United States, Western and Northern Europe.
About Net Lease Office Properties
Net Lease Office Properties (NYSE: NLOP) is a publicly traded real estate investment trust with a portfolio of 59 high-quality office properties, totaling approximately 8.7 million leasable square feet primarily leased to corporate tenants on a single-tenant net lease basis. The vast majority of the office properties owned by NLOP are located in the U.S., with the balance in Europe. The portfolio consists of 62 corporate tenants operating in a variety of industries, generating annualized based rent (ABR) of approximately $145 million. NLOP's business plan is to focus on realizing value for its shareholders primarily through strategic asset management and disposition of its property portfolio over time. Given WPC's extensive knowledge of the portfolio, NLOP is externally managed and advised by wholly owned affiliates of WPC to successfully execute on its business strategy. Over the course of its 50-year history, WPC has developed significant expertise in the single-tenant office real estate sector, including the operation, leasing, acquisition and development of assets through many market cycles, and has a proven track record of execution.
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