United Development Funding IV (OTCMKTS:UDFI) and Broadstone Net Lease (NYSE:BNL) Financial Survey

Broadstone Net Lease (NYSE:BNL) and United Development Funding IV (OTCMKTS:UDFI) are both real estate companies, but which is the better stock? We will compare the two companies based on the strength of their earnings, risk, institutional ownership, profitability, dividends, analyst recommendations and valuation.

Institutional and Insider Ownership

89.1% of Broadstone Net Lease shares are held by institutional investors. 1.0% of Broadstone Net Lease shares are held by company insiders. Comparatively, 0.5% of United Development Funding IV shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Broadstone Net Lease and United Development Funding IV, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Broadstone Net Lease	0	4	7	0	2.64
United Development Funding IV	0	0	0	0	0.00

Broadstone Net Lease currently has a consensus price target of $22.78, suggesting a potential upside of 7.44%. Given Broadstone Net Lease’s stronger consensus rating and higher probable upside, research analysts plainly believe Broadstone Net Lease is more favorable than United Development Funding IV.

Profitability

This table compares Broadstone Net Lease and United Development Funding IV’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%
United Development Funding IV	N/A	N/A	N/A

Valuation and Earnings

This table compares Broadstone Net Lease and United Development Funding IV”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Broadstone Net Lease	$476.17 million	8.54	$96.50 million	$0.76	27.89
United Development Funding IV	N/A	N/A	N/A	N/A	N/A

Broadstone Net Lease has higher revenue and earnings than United Development Funding IV.

Summary

Broadstone Net Lease beats United Development Funding IV on 9 of the 9 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 United Development Funding IV

United Development Funding IV invests in secured loans for the acquisition and development of land into single-family home lots, and the construction of model and new single-family homes. It also makes equity investments in residential real estate. The company has elected to be taxed as a real estate investment trust. As a result, it would not be subject to corporate income tax on that portion of its net income that is distributed to shareholders. United Development Funding IV was founded in 2008 and is headquartered in Grapevine, Texas.