VEREIT (VER) vs. Global Net Lease (GNL) Head to Head Analysis
VEREIT (NYSE: VER) and Global Net Lease (NYSE:GNL) are both finance companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, valuation, analyst recommendations, risk, dividends, profitability and institutional ownership.
VEREIT pays an annual dividend of $0.55 per share and has a dividend yield of 6.9%. Global Net Lease pays an annual dividend of $2.13 per share. VEREIT pays out -500.0% of its earnings in the form of a dividend. Global Net Lease pays out 349.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. VEREIT is clearly the better dividend stock, given its higher yield and lower payout ratio.
Risk & Volatility
VEREIT has a beta of 0.74, suggesting that its stock price is 26% less volatile than the S&P 500. Comparatively, Global Net Lease has a beta of 0.68, suggesting that its stock price is 32% less volatile than the S&P 500.
Valuation & Earnings
This table compares VEREIT and Global Net Lease’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Global Net Lease||$214.17||0.00||$47.14||$0.61||N/A|
Global Net Lease has higher revenue, but lower earnings than VEREIT. VEREIT 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.
This is a summary of current recommendations for VEREIT and Global Net Lease, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Global Net Lease||0||1||0||0||2.00|
VEREIT currently has a consensus price target of $10.00, indicating a potential upside of 26.26%. Global Net Lease has a consensus price target of $24.45, indicating a potential upside of Infinity. Given Global Net Lease’s higher possible upside, analysts plainly believe Global Net Lease is more favorable than VEREIT.
This table compares VEREIT and Global Net Lease’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Global Net Lease||16.04%||2.91%||1.35%|
Insider & Institutional Ownership
85.8% of VEREIT shares are owned by institutional investors. Comparatively, 42.6% of Global Net Lease shares are owned by institutional investors. 0.1% of VEREIT shares are owned by company insiders. Comparatively, 0.2% of Global Net Lease shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
VEREIT beats Global Net Lease on 8 of the 15 factors compared between the two stocks.
VEREIT Company Profile
VEREIT, Inc. is a full-service real estate operating company. The Company operates through two business segments: real estate investment (REI) segment and investment management segment, Cole Capital. As of December 31, 2016, through its REI segment, the Company owned and managed a portfolio of 4,142 retail, restaurant, office and industrial real estate properties with an aggregate of 93.3 million square feet, which are located in 49 states, Puerto Rico and Canada. Through its Cole Capital segment, the Company is responsible for raising capital for and managing the affairs of certain non-listed real estate investment trusts (the Cole REITs) on a day-to-day basis, identifying and making acquisitions and investments on the Cole REITs’ behalf. The Cole Capital segment sponsors and manages direct investment real estate programs, which primarily include over four publicly registered, non-traded REITs.
Global Net Lease Company Profile
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.
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