Head-To-Head Survey: Net Lease Office Properties (NYSE:NLOP) vs. UMH Properties (NYSE:UMH)

Net Lease Office Properties (NYSE:NLOP) and UMH Properties (NYSE:UMH) are both small-cap finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, institutional ownership, valuation, profitability, earnings, analyst recommendations and dividends.

Analyst Recommendations

This is a summary of current ratings and price targets for Net Lease Office Properties and UMH Properties, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Net Lease Office Properties	0	0	1	0	3.00
UMH Properties	0	2	2	0	2.50

Net Lease Office Properties presently has a consensus target price of $60.00, suggesting a potential upside of 144.20%. UMH Properties has a consensus target price of $19.00, suggesting a potential upside of 20.29%. Given Net Lease Office Properties’ stronger consensus rating and higher probable upside, analysts clearly believe Net Lease Office Properties is more favorable than UMH Properties.

Insider & Institutional Ownership

58.3% of Net Lease Office Properties shares are held by institutional investors. Comparatively, 75.4% of UMH Properties shares are held by institutional investors. 8.6% of UMH Properties shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Dividends

Net Lease Office Properties pays an annual dividend of $0.34 per share and has a dividend yield of 1.4%. UMH Properties pays an annual dividend of $0.82 per share and has a dividend yield of 5.2%. UMH Properties pays out -546.6% of its earnings in the form of a dividend. UMH Properties has increased its dividend for 3 consecutive years. UMH Properties is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares Net Lease Office Properties and UMH Properties’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Net Lease Office Properties	N/A	N/A	N/A
UMH Properties	3.42%	1.92%	0.55%

Valuation & Earnings

This table compares Net Lease Office Properties and UMH Properties’ gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Net Lease Office Properties	$174.97 million	2.08	-$131.75 million	N/A	N/A
UMH Properties	$220.93 million	5.03	$8.01 million	($0.15)	-105.29

UMH Properties has higher revenue and earnings than Net Lease Office Properties.

Summary

UMH Properties beats Net Lease Office Properties on 12 of the 14 factors compared between the two stocks.

About Net Lease Office Properties

Net Lease Office Properties (NYSE: NLOP) is a publicly traded real estate investment trust with a portfolio of 59 high-quality office properties, totaling approximately 8.7 million leasable square feet primarily leased to corporate tenants on a single-tenant net lease basis. The vast majority of the office properties owned by NLOP are located in the U.S., with the balance in Europe. The portfolio consists of 62 corporate tenants operating in a variety of industries, generating annualized based rent (ABR) of approximately $145 million. NLOP's business plan is to focus on realizing value for its shareholders primarily through strategic asset management and disposition of its property portfolio over time. Given WPC's extensive knowledge of the portfolio, NLOP is externally managed and advised by wholly owned affiliates of WPC to successfully execute on its business strategy. Over the course of its 50-year history, WPC has developed significant expertise in the single-tenant office real estate sector, including the operation, leasing, acquisition and development of assets through many market cycles, and has a proven track record of execution.

About UMH Properties

UMH Properties, Inc., which was organized in 1968, is a public equity REIT that owns and operates 135 manufactured home communities containing approximately 25,800 developed homesites. These communities are located in New Jersey, New York, Ohio, Pennsylvania, Tennessee, Indiana, Michigan, Maryland, Alabama, South Carolina and Georgia. UMH also has an ownership interest in and operates two communities in Florida, containing 363 sites, through its joint venture with Nuveen Real Estate