Global Net Lease (GNL) & PS Business Parks (PSB) Head to Head Contrast
Global Net Lease (NYSE: GNL) and PS Business Parks (NYSE:PSB) are both large-cap finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, risk, profitability, institutional ownership, dividends, earnings and analyst recommendations.
Volatility & Risk
Global Net Lease has a beta of 0.68, meaning that its stock price is 32% less volatile than the S&P 500. Comparatively, PS Business Parks has a beta of 0.57, meaning that its stock price is 43% less volatile than the S&P 500.
This is a summary of current ratings for Global Net Lease and PS Business Parks, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Global Net Lease||0||1||0||0||2.00|
|PS Business Parks||1||1||0||0||1.50|
Global Net Lease currently has a consensus target price of $24.45, indicating a potential upside of 12.16%. PS Business Parks has a consensus target price of $107.00, indicating a potential downside of 20.09%. Given Global Net Lease’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Global Net Lease is more favorable than PS Business Parks.
Insider and Institutional Ownership
42.6% of Global Net Lease shares are owned by institutional investors. Comparatively, 72.7% of PS Business Parks shares are owned by institutional investors. 0.2% of Global Net Lease shares are owned by insiders. Comparatively, 1.6% of PS Business Parks shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Global Net Lease pays an annual dividend of $2.13 per share and has a dividend yield of 9.8%. PS Business Parks pays an annual dividend of $3.40 per share and has a dividend yield of 2.5%. 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. PS Business Parks pays out 113.3% 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 has raised its dividend for 3 consecutive years. Global Net Lease is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This table compares Global Net Lease and PS Business Parks’ 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%|
|PS Business Parks||39.78%||16.95%||7.69%|
Valuation & Earnings
This table compares Global Net Lease and PS Business Parks’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Global Net Lease||$214.17 million||6.85||$47.14 million||$0.61||35.74|
|PS Business Parks||$387.39 million||9.42||$128.02 million||$3.00||44.63|
PS Business Parks has higher revenue and earnings than Global Net Lease. Global Net Lease is trading at a lower price-to-earnings ratio than PS Business Parks, indicating that it is currently the more affordable of the two stocks.
PS Business Parks beats Global Net Lease on 11 of the 16 factors compared between the two stocks.
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.
PS Business Parks Company Profile
PS Business Parks, Inc. is a self-advised and self-managed real estate investment trust (REIT). The Company owns, operates and develops commercial properties, primarily multi-tenant flex, office and industrial parks. It focuses on owning concentrated business parks. PS Business Parks, L.P. (the Operating Partnership) is a California limited partnership, which owns directly or indirectly substantially all of its assets and through, which the Company conducts substantially all of its business. PSB is the partner of the Operating Partnership and, as of December 31, 2016, owned 77.9% of the common partnership units. The remaining common partnership units are owned by Public Storage (PS). As of December 31, 2016, the Company owned and operated 28.1 million rentable square feet of commercial space, comprising 99 business parks, in the states, including California, Texas, Virginia, Florida, Maryland and Washington. It also manages 684,000 rentable square feet on behalf of PS.
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