Global Net Lease (NYSE:GNL) and Outfront Media (NYSE:OUT) are both finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, profitability, earnings, dividends, risk and institutional ownership.
Global Net Lease pays an annual dividend of $2.13 per share and has a dividend yield of 10.5%. Outfront Media pays an annual dividend of $1.44 per share and has a dividend yield of 5.1%. Global Net Lease pays out 99.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Outfront Media pays out 67.0% of its earnings in the form of a dividend.
Institutional & Insider Ownership
64.9% of Global Net Lease shares are held by institutional investors. Comparatively, 93.7% of Outfront Media shares are held by institutional investors. 0.2% of Global Net Lease shares are held by company insiders. Comparatively, 0.7% of Outfront Media shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
This table compares Global Net Lease and Outfront Media’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Global Net Lease||9.73%||1.91%||0.85%|
This is a summary of current recommendations and price targets for Global Net Lease and Outfront Media, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Global Net Lease||0||1||2||0||2.67|
Global Net Lease presently has a consensus target price of $22.50, suggesting a potential upside of 11.11%. Outfront Media has a consensus target price of $28.36, suggesting a potential upside of 0.01%. Given Global Net Lease’s higher possible upside, equities research analysts clearly believe Global Net Lease is more favorable than Outfront Media.
Volatility & Risk
Global Net Lease has a beta of 0.71, indicating that its share price is 29% less volatile than the S&P 500. Comparatively, Outfront Media has a beta of 1.04, indicating that its share price is 4% more volatile than the S&P 500.
Valuation and Earnings
This table compares Global Net Lease and Outfront Media’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Global Net Lease||$282.21 million||6.42||$10.90 million||$2.14||9.46|
|Outfront Media||$1.61 billion||2.53||$107.90 million||$2.15||13.19|
Outfront Media has higher revenue and earnings than Global Net Lease. Global Net Lease is trading at a lower price-to-earnings ratio than Outfront Media, indicating that it is currently the more affordable of the two stocks.
Outfront Media beats Global Net Lease on 12 of the 16 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 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 Outfront Media
OUTFRONT leverages the power of technology, location and creativity to connect brands with consumers outside of their homes through one of the largest and most diverse sets of billboard, transit, and mobile assets in North America. Through its ON Smart Media platform, OUTFRONT is implementing digital technology that will fundamentally change the ways advertisers engage audiences on-the-go.
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