Contrasting Broadstone Net Lease (NYSE:BNL) and Artis Real Estate Investment Trust (OTCMKTS:ARESF)

Broadstone Net Lease (NYSE:BNL) and Artis Real Estate Investment Trust (OTCMKTS:ARESF) are both real estate companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, profitability, earnings, analyst recommendations, valuation, institutional ownership and risk.

Valuation & Earnings

This table compares Broadstone Net Lease and Artis Real Estate Investment Trust”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Broadstone Net Lease	$454.14 million	9.03	$96.50 million	$0.76	28.13
Artis Real Estate Investment Trust	N/A	N/A	N/A	$0.96	6.78

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

Profitability

This table compares Broadstone Net Lease and Artis Real Estate Investment Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Broadstone Net Lease	30.61%	4.83%	2.54%
Artis Real Estate Investment Trust	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Broadstone Net Lease and Artis Real Estate Investment Trust, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Broadstone Net Lease	0	4	7	0	2.64
Artis Real Estate Investment Trust	0	0	0	0	0.00

Broadstone Net Lease presently has a consensus price target of $22.78, suggesting a potential upside of 6.53%. Given Broadstone Net Lease’s stronger consensus rating and higher probable upside, research analysts plainly believe Broadstone Net Lease is more favorable than Artis Real Estate Investment Trust.

Dividends

Broadstone Net Lease pays an annual dividend of $1.17 per share and has a dividend yield of 5.5%. Artis Real Estate Investment Trust pays an annual dividend of $0.81 per share and has a dividend yield of 12.5%. Broadstone Net Lease pays out 153.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Artis Real Estate Investment Trust pays out 84.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Broadstone Net Lease has increased its dividend for 4 consecutive years. Artis Real Estate Investment Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.

Insider and Institutional Ownership

89.1% of Broadstone Net Lease shares are held by institutional investors. Comparatively, 19.7% of Artis Real Estate Investment Trust shares are held by institutional investors. 1.0% of Broadstone Net Lease 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.

Summary

Broadstone Net Lease beats Artis Real Estate Investment Trust on 11 of the 14 factors compared between the two stocks.

About Broadstone Net Lease

Broadstone Net Lease, Inc. (the Corporation) is a Maryland corporation formed on October 18, 2007, that elected to be taxed as a real estate investment trust (REIT) commencing with the taxable year ended December 31, 2008. Broadstone Net Lease, LLC (the Corporation’s operating company, or the OP), is the entity through which the Corporation conducts its business and owns (either directly or through subsidiaries) all of the Corporation’s properties. The Corporation is the sole managing member of the OP. The membership units not owned by the Corporation are referred to as OP Units or non-controlling interests. As the Corporation conducts substantially all of its operations through the OP, it is structured as what is referred to as an umbrella partnership real estate investment trust (UPREIT). The Corporation’s common stock is listed on the New York Stock Exchange under the symbol BNL.

About Artis Real Estate Investment Trust

Artis is a diversified Canadian real estate investment trust with a portfolio of industrial, office and retail properties in Canada and the United States. Artis's vision is to build a best-in-class asset management and investment platform focused on growing net asset value per unit and distributions for investors through value investing in real estate.