Global Net Lease (NYSE: GNL) and Monmouth Real Estate Investment Corporation (NYSE:MNR) are both small-cap finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, risk, institutional ownership, dividends, profitability, analyst recommendations and earnings.

Profitability

This table compares Global Net Lease and Monmouth Real Estate Investment Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Global Net Lease 16.04% 2.91% 1.35%
Monmouth Real Estate Investment Corporation 32.02% 7.91% 2.69%

Valuation and Earnings

This table compares Global Net Lease and Monmouth Real Estate Investment Corporation’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Global Net Lease $233.85 million 6.12 $180.89 million $0.61 34.87
Monmouth Real Estate Investment Corporation $108.67 million 11.07 $82.64 million $0.30 53.93

Global Net Lease has higher revenue and earnings than Monmouth Real Estate Investment Corporation. Global Net Lease is trading at a lower price-to-earnings ratio than Monmouth Real Estate Investment Corporation, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Global Net Lease has a beta of 0.69, meaning that its share price is 31% less volatile than the S&P 500. Comparatively, Monmouth Real Estate Investment Corporation has a beta of 0.5, meaning that its share price is 50% less volatile than the S&P 500.

Insider and Institutional Ownership

42.6% of Global Net Lease shares are owned by institutional investors. Comparatively, 60.6% of Monmouth Real Estate Investment Corporation shares are owned by institutional investors. 0.2% of Global Net Lease shares are owned by insiders. Comparatively, 5.3% of Monmouth Real Estate Investment Corporation shares are owned 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

Global Net Lease pays an annual dividend of $2.13 per share and has a dividend yield of 10.0%. Monmouth Real Estate Investment Corporation pays an annual dividend of $0.64 per share and has a dividend yield of 4.0%. Global Net Lease pays out 349.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Monmouth Real Estate Investment Corporation pays out 213.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Monmouth Real Estate Investment Corporation has increased its dividend for 2 consecutive years.

Analyst Recommendations

This is a summary of current recommendations and price targets for Global Net Lease and Monmouth Real Estate Investment Corporation, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Global Net Lease 0 1 0 0 2.00
Monmouth Real Estate Investment Corporation 0 1 3 0 2.75

Global Net Lease currently has a consensus price target of $24.45, suggesting a potential upside of 14.95%. Monmouth Real Estate Investment Corporation has a consensus price target of $16.38, suggesting a potential upside of 1.21%. Given Global Net Lease’s higher probable upside, research analysts clearly believe Global Net Lease is more favorable than Monmouth Real Estate Investment Corporation.

Summary

Monmouth Real Estate Investment Corporation beats Global Net Lease on 11 of the 17 factors compared between the two stocks.

Global Net Lease Company Profile

Global Net Lease, Inc. is a real estate investment trust. The Company’s business consists of owning, managing, operating, leasing, acquiring, investing in and disposing of real estate assets. It owns and invests in commercial properties principally in the United States, the United Kingdom and continental Europe that are then leased to companies. It was formed to primarily acquire a portfolio of commercial properties, with an emphasis on sale-leaseback transactions involving single tenant net-leased commercial properties. As of December 31, 2016, it owned 310 properties consisting of 22 million rentable square feet. As of December 31, 2016, its owned 310 properties, including 241 properties located in the United States and Puerto Rico, 43 properties located in the United Kingdom and 26 properties located across continental Europe. It may also originate or acquire first mortgage loans secured by real estate. Its business is conducted through Global Net Lease Operating Partnership, L.P.

Monmouth Real Estate Investment Corporation Company Profile

Monmouth Real Estate Investment Corporation is a real estate investment trust (REIT). The Company’s primary business is the ownership of real estate. Its investment focus is to own single tenant, industrial buildings and leased to investment-grade tenants or their subsidiaries on long-term net leases. In addition, the Company owns a portfolio of REIT investment securities. Its assets are situated near airports, transportation hubs and manufacturing plants. The Company’s featured properties include ULTA Cosmetics, Milwaukee Tool, Beam Suntory, FedEx Supply Chain Services, Coca-Cola, Best Buy, International Paper, Home Depot, FedEx Ground, Actavis, Anheuser-Busch, United Technologies, Kellogg’s, Siemens, National Oilwell and Cardinal Health. The Company’s property portfolio consists of approximately 105 properties located in over 30 states, containing a total of approximately 17.9 million rentable square feet.

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