Head-To-Head Review: Douglas Emmett (NYSE:DEI) and Net Lease Office Properties (NYSE:NLOP)

Douglas Emmett (NYSE:DEI) and Net Lease Office Properties (NYSE:NLOP) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, analyst recommendations, institutional ownership, risk, valuation, dividends and profitability.

Insider and Institutional Ownership

97.4% of Douglas Emmett shares are held by institutional investors. Comparatively, 58.3% of Net Lease Office Properties shares are held by institutional investors. 14.7% of Douglas Emmett shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Volatility & Risk

Douglas Emmett has a beta of 1.11, suggesting that its stock price is 11% more volatile than the S&P 500. Comparatively, Net Lease Office Properties has a beta of 0.88, suggesting that its stock price is 12% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Douglas Emmett	-1.68%	-0.43%	-0.17%
Net Lease Office Properties	-122.90%	-30.16%	-17.58%

Valuation & Earnings

This table compares Douglas Emmett and Net Lease Office Properties”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Douglas Emmett	$1.00 billion	2.96	-$42.71 million	($0.10)	-176.84
Net Lease Office Properties	$174.96 million	2.70	-$131.75 million	N/A	N/A

Douglas Emmett has higher revenue and earnings than Net Lease Office Properties.

Analyst Ratings

This is a summary of recent recommendations for Douglas Emmett and Net Lease Office Properties, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Douglas Emmett	0	5	4	0	2.44
Net Lease Office Properties	0	0	1	0	3.00

Douglas Emmett currently has a consensus price target of $18.75, indicating a potential upside of 6.03%. Net Lease Office Properties has a consensus price target of $46.00, indicating a potential upside of 43.97%. Given Net Lease Office Properties’ stronger consensus rating and higher probable upside, analysts plainly believe Net Lease Office Properties is more favorable than Douglas Emmett.

Summary

Douglas Emmett beats Net Lease Office Properties on 10 of the 12 factors compared between the two stocks.

About Douglas Emmett

Douglas Emmett, Inc. (DEI) is a fully integrated, self-administered and self-managed real estate investment trust (REIT), and one of the largest owners and operators of high-quality office and multifamily properties located in the premier coastal submarkets of Los Angeles and Honolulu. Douglas Emmett focuses on owning and acquiring a substantial share of top-tier office properties and premier multifamily communities in neighborhoods that possess significant supply constraints, high-end executive housing and key lifestyle amenities.

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.