Financial Comparison: Global Net Lease (NYSE:GNL) & Four Corners Property Trust (NYSE:FCPT)

Global Net Lease (NYSE:GNL) and Four Corners Property Trust (NYSE:FCPT) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, profitability, valuation, risk, dividends and analyst recommendations.

Profitability

This table compares Global Net Lease and Four Corners Property Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Global Net Lease	-8.72%	-2.90%	-1.07%
Four Corners Property Trust	38.74%	7.38%	4.06%

Analyst Recommendations

This is a summary of current recommendations for Global Net Lease and Four Corners Property Trust, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Global Net Lease	0	1	4	1	3.00
Four Corners Property Trust	0	5	4	0	2.44

Global Net Lease presently has a consensus price target of $10.40, indicating a potential upside of 13.23%. Four Corners Property Trust has a consensus price target of $28.13, indicating a potential upside of 11.90%. Given Global Net Lease’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Global Net Lease is more favorable than Four Corners Property Trust.

Dividends

Global Net Lease pays an annual dividend of $0.76 per share and has a dividend yield of 8.3%. Four Corners Property Trust pays an annual dividend of $1.47 per share and has a dividend yield of 5.8%. Global Net Lease pays out -190.0% of its earnings in the form of a dividend. Four Corners Property Trust pays out 131.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Four Corners Property Trust has raised its dividend for 5 consecutive years. Global Net Lease is clearly the better dividend stock, given its higher yield and lower payout ratio.

Volatility and Risk

Global Net Lease has a beta of 1.01, suggesting that its share price is 1% more volatile than the S&P 500. Comparatively, Four Corners Property Trust has a beta of 0.8, suggesting that its share price is 20% less volatile than the S&P 500.

Institutional and Insider Ownership

61.2% of Global Net Lease shares are held by institutional investors. Comparatively, 98.7% of Four Corners Property Trust shares are held by institutional investors. 0.6% of Global Net Lease shares are held by company insiders. Comparatively, 1.2% of Four Corners Property Trust shares are held 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.

Earnings and Valuation

This table compares Global Net Lease and Four Corners Property Trust”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Global Net Lease	$495.29 million	3.93	-$225.46 million	($0.40)	-22.96
Four Corners Property Trust	$294.13 million	9.38	$112.36 million	$1.12	22.44

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

Summary

Four Corners Property Trust beats Global Net Lease on 10 of the 17 factors compared between the two stocks.

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.

About Four Corners Property Trust

Four Corners Property Trust, Inc. engages in the owning, acquisition, and leasing of properties for use in the restaurant and food-service related industries. It operates through the Real Estate Operations and Restaurant Operations segments. The Real Estate Operations segment consists of rental revenues generated by leasing restaurant properties. The Restaurant Operations segment includes the Kerrow Restaurant operating business. The company was founded on July 2, 2015 and is headquartered in Mill Valley, CA.