Clipper Realty (NYSE:CLPR – Get Free Report) and Global Net Lease (NYSE:GNL – Get Free Report) are both small-cap finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, valuation, institutional ownership, earnings, dividends, analyst recommendations and profitability.
Insider & Institutional Ownership
37.6% of Clipper Realty shares are owned by institutional investors. Comparatively, 61.2% of Global Net Lease shares are owned by institutional investors. 53.0% of Clipper Realty shares are owned by insiders. Comparatively, 0.6% of Global Net Lease shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Dividends
Clipper Realty pays an annual dividend of $0.38 per share and has a dividend yield of 11.5%. Global Net Lease pays an annual dividend of $0.76 per share and has a dividend yield of 8.1%. Clipper Realty pays out -46.9% of its earnings in the form of a dividend. Global Net Lease pays out -190.0% 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.
Risk and Volatility
Analyst Ratings
This is a summary of recent recommendations for Clipper Realty and Global Net Lease, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Clipper Realty | 0 | 1 | 0 | 0 | 2.00 |
| Global Net Lease | 0 | 1 | 4 | 1 | 3.00 |
Global Net Lease has a consensus price target of $10.40, indicating a potential upside of 10.34%. Given Global Net Lease’s stronger consensus rating and higher probable upside, analysts clearly believe Global Net Lease is more favorable than Clipper Realty.
Profitability
This table compares Clipper Realty and Global Net Lease’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Clipper Realty | -7.10% | N/A | -0.87% |
| Global Net Lease | -8.72% | -2.90% | -1.07% |
Valuation & Earnings
This table compares Clipper Realty and Global Net Lease”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Clipper Realty | $153.20 million | 0.35 | -$19.90 million | ($0.81) | -4.07 |
| Global Net Lease | $495.29 million | 4.03 | -$225.46 million | ($0.40) | -23.56 |
Clipper Realty has higher earnings, but lower revenue than Global Net Lease. Global Net Lease is trading at a lower price-to-earnings ratio than Clipper Realty, indicating that it is currently the more affordable of the two stocks.
Summary
Global Net Lease beats Clipper Realty on 10 of the 17 factors compared between the two stocks.
About Clipper Realty
Clipper Realty Inc. (NYSE: CLPR) is a self-administered and self-managed real estate company that acquires, owns, manages, operates, and repositions multifamily residential and commercial properties in the New York metropolitan area, with a portfolio in Manhattan and Brooklyn.
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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