Financial Analysis: Global Net Lease (NYSE:GNL) and Stockland (OTCMKTS:STKAF)

Stockland (OTCMKTS:STKAF) and Global Net Lease (NYSE:GNL) are both real estate companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, earnings, risk, dividends and valuation.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Stockland and Global Net Lease, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Stockland	0	0	0	0	0.00
Global Net Lease	0	2	3	1	2.83

Global Net Lease has a consensus target price of $10.00, indicating a potential upside of 7.99%. Given Global Net Lease’s stronger consensus rating and higher probable upside, analysts clearly believe Global Net Lease is more favorable than Stockland.

Dividends

Stockland pays an annual dividend of $0.24 per share and has a dividend yield of 9.6%. Global Net Lease pays an annual dividend of $0.76 per share and has a dividend yield of 8.2%. Stockland pays out 105.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Global Net Lease pays out -271.4% of its earnings in the form of a dividend.

Insider and Institutional Ownership

38.4% of Stockland shares are owned by institutional investors. Comparatively, 61.2% of Global Net Lease shares are owned by institutional investors. 0.6% of Global Net Lease shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Stockland and Global Net Lease”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Stockland	N/A	N/A	N/A	$0.23	11.01
Global Net Lease	$459.73 million	4.25	-$225.46 million	($0.28)	-33.07

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Stockland	N/A	N/A	N/A
Global Net Lease	-2.94%	-1.00%	-0.37%

Summary

Global Net Lease beats Stockland on 8 of the 14 factors compared between the two stocks.

About Stockland

We are a leading creator and curator of connected communities with people at the heart of the places we create. For more than 70 years, we have built a proud legacy, helping more Australians achieve the dream of home ownership, and enabling the future of work and retail. Today, we continue to build on our history as one of Australia's largest diversified property groups to elevate the social value of our places, and create a tangible sense of human connection, belonging and community for our customers. We own, fund, develop and manage one of Australia's largest portfolios of residential and land lease communities, retail town centres, and workplace and logistics assets. Our approach is distinctive, bringing a unique combination of development expertise, scale, deep customer insight, and diverse talent – with care in everything we do. We are committed to contributing to the economic prosperity of Australia and the wellbeing of our communities and our planet.

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.