Comparing Global Net Lease (NYSE:GNL) & Broadstone Net Lease (NYSE:BNL)

Broadstone Net Lease (NYSE:BNL – Get Free Report) and Global Net Lease (NYSE:GNL – Get Free Report) are both real estate companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, dividends, earnings, profitability, valuation and risk.

Profitability

This table compares Broadstone Net Lease and Global Net Lease’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Broadstone Net Lease 30.61% 4.83% 2.54%
Global Net Lease -2.94% -1.00% -0.37%

Institutional & Insider Ownership

89.1% of Broadstone Net Lease shares are held by institutional investors. Comparatively, 61.2% of Global Net Lease shares are held by institutional investors. 1.0% of Broadstone Net Lease shares are held by insiders. Comparatively, 0.6% of Global Net Lease shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Dividends

Broadstone Net Lease pays an annual dividend of $1.17 per share and has a dividend yield of 6.2%. Global Net Lease pays an annual dividend of $0.76 per share and has a dividend yield of 8.9%. Broadstone Net Lease pays out 153.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Global Net Lease pays out -271.4% of its earnings in the form of a dividend. Broadstone Net Lease has raised its dividend for 4 consecutive years. Global Net Lease is clearly the better dividend stock, given its higher yield and lower payout ratio.

Volatility & Risk

Broadstone Net Lease has a beta of 0.91, meaning that its stock price is 9% less volatile than the S&P 500. Comparatively, Global Net Lease has a beta of 1.04, meaning that its stock price is 4% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and price targets for Broadstone Net Lease and Global Net Lease, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Broadstone Net Lease 0 4 7 0 2.64
Global Net Lease 0 1 3 1 3.00

Broadstone Net Lease currently has a consensus target price of $22.78, suggesting a potential upside of 20.32%. Global Net Lease has a consensus target price of $10.25, suggesting a potential upside of 19.81%. Given Broadstone Net Lease’s higher possible upside, equities research analysts plainly believe Broadstone Net Lease is more favorable than Global Net Lease.

Earnings & Valuation

This table compares Broadstone Net Lease and Global Net Lease”s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Broadstone Net Lease $454.14 million 8.00 $96.50 million $0.76 24.91
Global Net Lease $495.29 million 3.64 -$225.46 million ($0.28) -30.55

Broadstone Net Lease has higher earnings, but lower revenue than Global Net Lease. Global Net Lease is trading at a lower price-to-earnings ratio than Broadstone Net Lease, indicating that it is currently the more affordable of the two stocks.

Summary

Broadstone Net Lease beats Global Net Lease on 12 of the 18 factors compared between the two stocks.

About Broadstone Net Lease

(Get Free Report)

Broadstone Net Lease, Inc. (the Corporation) is a Maryland corporation formed on October 18, 2007, that elected to be taxed as a real estate investment trust (REIT) commencing with the taxable year ended December 31, 2008. Broadstone Net Lease, LLC (the Corporation’s operating company, or the OP), is the entity through which the Corporation conducts its business and owns (either directly or through subsidiaries) all of the Corporation’s properties. The Corporation is the sole managing member of the OP. The membership units not owned by the Corporation are referred to as OP Units or non-controlling interests. As the Corporation conducts substantially all of its operations through the OP, it is structured as what is referred to as an umbrella partnership real estate investment trust (UPREIT). The Corporation’s common stock is listed on the New York Stock Exchange under the symbol BNL.

About Global Net Lease

(Get Free Report)

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.

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