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

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

Institutional and Insider Ownership

98.7% of Four Corners Property Trust shares are held by institutional investors. Comparatively, 61.2% of Global Net Lease shares are held by institutional investors. 1.2% of Four Corners Property Trust shares are held by insiders. Comparatively, 0.6% of Global Net Lease shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Risk & Volatility

Four Corners Property Trust has a beta of 0.8, meaning that its share price is 20% less volatile than the S&P 500. Comparatively, Global Net Lease has a beta of 1.02, meaning that its share price is 2% more volatile than the S&P 500.

Dividends

Four Corners Property Trust pays an annual dividend of $1.47 per share and has a dividend yield of 5.9%. Global Net Lease pays an annual dividend of $0.76 per share and has a dividend yield of 8.4%. Four Corners Property Trust pays out 131.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Global Net Lease pays out -190.0% of its earnings in the form of a dividend. Four Corners Property Trust has increased its dividend for 5 consecutive years. Global Net Lease is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Ratings

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

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

Four Corners Property Trust currently has a consensus target price of $28.00, indicating a potential upside of 12.11%. Global Net Lease has a consensus target price of $10.40, indicating a potential upside of 14.65%. Given Global Net Lease’s stronger consensus rating and higher possible upside, analysts clearly believe Global Net Lease is more favorable than Four Corners Property Trust.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Four Corners Property Trust	$294.13 million	9.32	$112.36 million	$1.12	22.30
Global Net Lease	$495.29 million	3.88	-$225.46 million	($0.40)	-22.68

Four Corners Property Trust has higher earnings, but lower revenue 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.

Profitability

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

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

Summary

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

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.

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.