W.P. Carey (NYSE:WPC – Get Free Report) and Net Lease Office Properties (NYSE:NLOP – Get Free Report) are both real estate companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, institutional ownership, valuation, risk, analyst recommendations, earnings and profitability.
Profitability
This table compares W.P. Carey and Net Lease Office Properties’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| W.P. Carey | 36.34% | 7.81% | 3.58% |
| Net Lease Office Properties | -59.82% | -16.92% | -12.66% |
Insider & Institutional Ownership
73.7% of W.P. Carey shares are held by institutional investors. Comparatively, 58.3% of Net Lease Office Properties shares are held by institutional investors. 1.0% of W.P. Carey 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 endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| W.P. Carey | $1.72 billion | 9.47 | $466.36 million | $2.93 | 24.36 |
| Net Lease Office Properties | $118.92 million | 1.44 | -$145.26 million | ($3.06) | -3.78 |
W.P. Carey has higher revenue and earnings than Net Lease Office Properties. Net Lease Office Properties is trading at a lower price-to-earnings ratio than W.P. Carey, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
W.P. Carey has a beta of 0.75, meaning that its share price is 25% less volatile than the S&P 500. Comparatively, Net Lease Office Properties has a beta of 0.57, meaning that its share price is 43% less volatile than the S&P 500.
Analyst Ratings
This is a summary of recent ratings for W.P. Carey and Net Lease Office Properties, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| W.P. Carey | 1 | 6 | 7 | 0 | 2.43 |
| Net Lease Office Properties | 1 | 0 | 0 | 0 | 1.00 |
W.P. Carey presently has a consensus price target of $79.38, indicating a potential upside of 11.21%. Given W.P. Carey’s stronger consensus rating and higher probable upside, analysts plainly believe W.P. Carey is more favorable than Net Lease Office Properties.
Summary
W.P. Carey beats Net Lease Office Properties on 14 of the 14 factors compared between the two stocks.
About W.P. Carey
W. P. Carey ranks among the largest net lease REITs with a well-diversified portfolio of high-quality, operationally critical commercial real estate, which includes 1,424 net lease properties covering approximately 173 million square feet and a portfolio of 89 self-storage operating properties as of December 31, 2023. With offices in New York, London, Amsterdam and Dallas, the company remains focused on investing primarily in single-tenant, industrial, warehouse and retail properties located in the U.S. and Northern and Western Europe, under long-term net leases with built-in rent escalations.
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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