Global Net Lease (NYSE: GNL) and Federal Realty Investment Trust (NYSE:FRT) are both finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, risk, valuation, earnings and dividends.

Risk & Volatility

Global Net Lease has a beta of 0.68, meaning that its stock price is 32% less volatile than the S&P 500. Comparatively, Federal Realty Investment Trust has a beta of 0.31, meaning that its stock price is 69% less volatile than the S&P 500.

Dividends

Global Net Lease pays an annual dividend of $2.13 per share and has a dividend yield of 9.9%. Federal Realty Investment Trust pays an annual dividend of $4.00 per share and has a dividend yield of 3.0%. Global Net Lease pays out 434.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Federal Realty Investment Trust pays out 97.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Federal Realty Investment Trust has raised its dividend for 49 consecutive years.

Analyst Recommendations

This is a summary of current ratings and price targets for Global Net Lease and Federal Realty Investment Trust, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Global Net Lease 0 2 0 0 2.00
Federal Realty Investment Trust 1 2 7 0 2.60

Global Net Lease currently has a consensus price target of $25.23, indicating a potential upside of 17.38%. Federal Realty Investment Trust has a consensus price target of $140.44, indicating a potential upside of 6.00%. Given Global Net Lease’s higher possible upside, analysts clearly believe Global Net Lease is more favorable than Federal Realty Investment Trust.

Profitability

This table compares Global Net Lease and Federal Realty Investment Trust’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Global Net Lease 12.65% 2.29% 1.06%
Federal Realty Investment Trust 35.50% 13.28% 4.82%

Insider & Institutional Ownership

43.0% of Global Net Lease shares are held by institutional investors. Comparatively, 95.3% of Federal Realty Investment Trust shares are held by institutional investors. 0.2% of Global Net Lease shares are held by insiders. Comparatively, 1.1% of Federal Realty Investment Trust shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Global Net Lease and Federal Realty Investment Trust’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Global Net Lease $214.17 million 6.75 $47.14 million $0.49 43.86
Federal Realty Investment Trust $801.59 million 11.99 $249.91 million $4.10 32.32

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

Summary

Federal Realty Investment Trust beats Global Net Lease on 14 of the 17 factors compared between the two stocks.

About Global Net Lease

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.

About Federal Realty Investment Trust

Federal Realty Investment Trust is an equity real estate investment trust (REIT). The Company specializes in the ownership, management and redevelopment of retail and mixed-use properties located primarily in affluent communities in selected metropolitan markets in the Northeast and Mid-Atlantic regions of the United States, as well as in California and South Florida. As of December 31, 2016, the Company owned or had an interest in community and neighborhood shopping centers and mixed-use properties, which operated as 96 retail real estate projects and included approximately 22.6 million square feet. As of December 31, 2016, its 96 retail shopping center and mixed-use properties were located in 12 states and the District of Columbia. As of December 31, 2016, there were approximately 2,900 leases with tenants providing a range of retail products and services. These tenants range from sole proprietorships to national retailers, or corporate group of tenants.

Receive News & Ratings for Global Net Lease Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Global Net Lease Inc. and related companies with Analyst Ratings Network's FREE daily email newsletter.