Global Net Lease (NYSE: GNL) and Columbia Property Trust (NYSE:CXP) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, risk, earnings, profitability, valuation and dividends.
Earnings and Valuation
This table compares Global Net Lease and Columbia Property 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||6.78||$47.14 million||$0.49||44.04|
|Columbia Property Trust||$473.54 million||5.73||$84.28 million||$1.68||13.47|
Columbia Property Trust has higher revenue and earnings than Global Net Lease. Columbia Property 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.
Volatility and Risk
Global Net Lease has a beta of 0.68, meaning that its share price is 32% less volatile than the S&P 500. Comparatively, Columbia Property Trust has a beta of 1.17, meaning that its share price is 17% more volatile than the S&P 500.
This table compares Global Net Lease and Columbia Property 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%|
|Columbia Property Trust||63.37%||8.10%||4.91%|
Global Net Lease pays an annual dividend of $2.13 per share and has a dividend yield of 9.9%. Columbia Property Trust pays an annual dividend of $0.80 per share and has a dividend yield of 3.5%. 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. Columbia Property Trust pays out 47.6% of its earnings in the form of a dividend.
Insider & Institutional Ownership
42.3% of Global Net Lease shares are owned by institutional investors. Comparatively, 66.2% of Columbia Property Trust shares are owned by institutional investors. 0.2% of Global Net Lease shares are owned by insiders. Comparatively, 0.5% of Columbia Property Trust 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.
This is a breakdown of recent ratings and price targets for Global Net Lease and Columbia Property Trust, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Global Net Lease||0||2||0||0||2.00|
|Columbia Property Trust||0||2||5||0||2.71|
Global Net Lease presently has a consensus price target of $25.23, suggesting a potential upside of 16.89%. Columbia Property Trust has a consensus price target of $24.17, suggesting a potential upside of 6.79%. Given Global Net Lease’s higher probable upside, equities analysts clearly believe Global Net Lease is more favorable than Columbia Property Trust.
Columbia Property Trust beats Global Net Lease on 13 of the 16 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 Columbia Property Trust
Columbia Property Trust, Inc. operates as a real estate investment trust (REIT), which owns and operates commercial real estate properties. The Company’s primary objective is to generate long-term shareholder returns from a combination of steadily growing cash flows and appreciation in its net asset values, through the acquisition and ownership of office buildings located principally in high-barrier-to-entry markets. The Company’s segments include New York, San Francisco, Atlanta, Washington, D.C., Boston, Los Angeles and all other office markets. The all other office markets segment consists of properties in similar, low-barrier to entry geographic locations, in which the Company does not plan to make further investments. The Company conducts its business primarily through Columbia Property Trust Operating Partnership, L.P. (Columbia Property Trust OP), which acquires, develops, owns, leases and operates real properties directly through subsidiaries or through joint ventures.
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