Net Lease Office Properties (NYSE:NLOP – Get Free Report) and Global Net Lease (NYSE:GNL – Get Free Report) are both small-cap real estate companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, profitability, dividends, analyst recommendations, earnings, institutional ownership and risk.
Volatility and Risk
Net Lease Office Properties has a beta of 0.56, indicating that its share price is 44% less volatile than the S&P 500. Comparatively, Global Net Lease has a beta of 1.04, indicating that its share price is 4% more volatile than the S&P 500.
Analyst Ratings
This is a summary of recent ratings and recommmendations for Net Lease Office Properties and Global Net Lease, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Net Lease Office Properties | 1 | 0 | 0 | 0 | 1.00 |
| Global Net Lease | 0 | 1 | 3 | 1 | 3.00 |
Profitability
This table compares Net Lease Office Properties and Global Net Lease’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Net Lease Office Properties | -59.82% | -16.92% | -12.66% |
| Global Net Lease | -2.94% | -1.00% | -0.37% |
Valuation & Earnings
This table compares Net Lease Office Properties 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 | |
| Net Lease Office Properties | $118.92 million | 1.37 | -$145.26 million | ($3.06) | -3.59 |
| Global Net Lease | $495.29 million | 3.88 | -$225.46 million | ($0.28) | -32.57 |
Net Lease Office Properties has higher earnings, but lower revenue than Global Net Lease. Global Net Lease is trading at a lower price-to-earnings ratio than Net Lease Office Properties, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
58.3% of Net Lease Office Properties shares are owned by institutional investors. Comparatively, 61.2% of Global Net Lease shares are owned by institutional investors. 0.7% of Net Lease Office Properties shares are owned by insiders. Comparatively, 0.6% of Global Net Lease shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Summary
Global Net Lease beats Net Lease Office Properties on 12 of the 15 factors compared between the two stocks.
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.
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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