Alexander’s (NYSE:ALX – Get Free Report) and Global Net Lease (NYSE:GNL – Get Free Report) are both small-cap real estate companies, but which is the superior stock? We will contrast the two businesses based on the strength of their earnings, dividends, institutional ownership, risk, profitability, analyst recommendations and valuation.
Volatility & Risk
Alexander’s has a beta of 0.78, suggesting that its share price is 22% less volatile than the S&P 500. Comparatively, Global Net Lease has a beta of 1.04, suggesting that its share price is 4% more volatile than the S&P 500.
Analyst Recommendations
This is a summary of current recommendations and price targets for Alexander’s and Global Net Lease, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Alexander’s | 1 | 0 | 1 | 1 | 2.67 |
| Global Net Lease | 0 | 1 | 3 | 1 | 3.00 |
Earnings & Valuation
This table compares Alexander’s 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 | |
| Alexander’s | $213.18 million | 6.38 | $28.22 million | $33.05 | 8.05 |
| Global Net Lease | $495.29 million | 3.89 | -$225.46 million | ($0.28) | -32.63 |
Alexander’s has higher earnings, but lower revenue than Global Net Lease. Global Net Lease is trading at a lower price-to-earnings ratio than Alexander’s, indicating that it is currently the more affordable of the two stocks.
Dividends
Alexander’s pays an annual dividend of $18.00 per share and has a dividend yield of 6.8%. Global Net Lease pays an annual dividend of $0.76 per share and has a dividend yield of 8.3%. Alexander’s pays out 54.5% of its earnings in the form of a dividend. Global Net Lease pays out -271.4% 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. Alexander’s has raised its dividend for 1 consecutive years. Global Net Lease is clearly the better dividend stock, given its higher yield and lower payout ratio.
Institutional & Insider Ownership
32.0% of Alexander’s shares are held by institutional investors. Comparatively, 61.2% of Global Net Lease shares are held by institutional investors. 26.4% of Alexander’s 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.
Profitability
This table compares Alexander’s and Global Net Lease’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Alexander’s | 79.06% | 123.09% | 14.43% |
| Global Net Lease | -2.94% | -1.00% | -0.37% |
Summary
Alexander’s beats Global Net Lease on 9 of the 17 factors compared between the two stocks.
About Alexander’s
Alexander’s, Inc. (NYSE: ALX) is a real estate investment trust (REIT), incorporated in Delaware, engaged in leasing, managing, developing and redeveloping its properties. All references to we, us, our, Company and Alexander’s refer to Alexander’s, Inc. and its consolidated subsidiaries. We are managed by, and our properties are leased and developed by, Vornado Realty Trust (Vornado) (NYSE: VNO). We have five properties in New York City.
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.
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