Global Net Lease (GNL) and Its Competitors Critical Analysis

Global Net Lease (NYSE:GNL) is one of 111 publicly-traded companies in the “Diversified REITs” industry, but how does it contrast to its competitors? We will compare Global Net Lease to similar companies based on the strength of its dividends, institutional ownership, analyst recommendations, profitability, earnings, valuation and risk.

Earnings and Valuation

This table compares Global Net Lease and its competitors gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Global Net Lease	$495.29 million	-$225.46 million	-25.50
Global Net Lease Competitors	$196.53 million	$18.17 million	5.89

Global Net Lease has higher revenue, but lower earnings than its competitors. Global Net Lease is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Dividends

Global Net Lease pays an annual dividend of $0.76 per share and has a dividend yield of 11.0%. Global Net Lease pays out -281.5% of its earnings in the form of a dividend. As a group, “Diversified REITs” companies pay a dividend yield of 6.9% and pay out 5,012.3% of their earnings in the form of a dividend. Global Net Lease is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.

Volatility & Risk

Global Net Lease has a beta of 1.09, indicating that its stock price is 9% more volatile than the S&P 500. Comparatively, Global Net Lease’s competitors have a beta of 1.44, indicating that their average stock price is 44% more volatile than the S&P 500.

Institutional and Insider Ownership

61.2% of Global Net Lease shares are held by institutional investors. Comparatively, 39.2% of shares of all “Diversified REITs” companies are held by institutional investors. 0.6% of Global Net Lease shares are held by company insiders. Comparatively, 12.4% of shares of all “Diversified REITs” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Global Net Lease	-2.28%	-0.81%	-0.31%
Global Net Lease Competitors	-35.52%	-4.62%	0.61%

Analyst Recommendations

This is a summary of current ratings and recommmendations for Global Net Lease and its competitors, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Global Net Lease	0	1	4	0	2.80
Global Net Lease Competitors	495	2474	1972	23	2.31

Global Net Lease currently has a consensus price target of $9.75, indicating a potential upside of 41.61%. As a group, “Diversified REITs” companies have a potential upside of 8.91%. Given Global Net Lease’s stronger consensus rating and higher probable upside, analysts plainly believe Global Net Lease is more favorable than its competitors.

Summary

Global Net Lease beats its competitors on 9 of the 15 factors compared.

About Global Net Lease

Global Net Lease, Inc. is a real estate investment trust (REIT) that acquires and manages commercial properties leased to businesses, generally under long-term net leases. These leases typically assign some property expenses to tenants, such as taxes, insurance and maintenance. The company’s portfolio includes industrial, office and retail properties in the United States and Europe. Global Net Lease was formed in 2011 and became publicly traded in 2012. Its 2023 merger with The Necessity Retail REIT expanded its portfolio to include additional retail properties.