Financial Contrast: BRT Apartments (NYSE:BRT) vs. Global Net Lease (NYSE:GNL)

Global Net Lease (NYSE:GNL) and BRT Apartments (NYSE:BRT) are both small-cap finance companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, dividends, profitability, valuation and risk.

Institutional and Insider Ownership

61.2% of Global Net Lease shares are held by institutional investors. Comparatively, 29.1% of BRT Apartments shares are held by institutional investors. 0.3% of Global Net Lease shares are held by insiders. Comparatively, 40.2% of BRT Apartments shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Dividends

Global Net Lease pays an annual dividend of $1.10 per share and has a dividend yield of 15.4%. BRT Apartments pays an annual dividend of $1.00 per share and has a dividend yield of 5.6%. Global Net Lease pays out -117.0% of its earnings in the form of a dividend. BRT Apartments pays out -188.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Analyst Recommendations

This is a summary of current ratings and price targets for Global Net Lease and BRT Apartments, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Global Net Lease	0	2	3	1	2.83
BRT Apartments	0	0	2	0	3.00

Global Net Lease currently has a consensus price target of $9.50, indicating a potential upside of 32.77%. BRT Apartments has a consensus price target of $23.00, indicating a potential upside of 28.49%. Given Global Net Lease’s higher possible upside, analysts clearly believe Global Net Lease is more favorable than BRT Apartments.

Profitability

This table compares Global Net Lease and BRT Apartments’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Global Net Lease	-21.37%	-7.04%	-2.24%
BRT Apartments	-9.94%	-4.33%	-1.34%

Risk & Volatility

Global Net Lease has a beta of 1.34, suggesting that its share price is 34% more volatile than the S&P 500. Comparatively, BRT Apartments has a beta of 1.12, suggesting that its share price is 12% more volatile than the S&P 500.

Earnings and Valuation

This table compares Global Net Lease and BRT Apartments”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Global Net Lease	$515.07 million	3.20	-$211.91 million	($0.94)	-7.61
BRT Apartments	$93.62 million	3.60	$3.87 million	($0.53)	-33.77

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

Summary

BRT Apartments beats Global Net Lease on 9 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. 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 BRT Apartments

BRT Apartments Corp. is a real estate investment trust. It engages in the ownership, operation, and holding interests in joint ventures that own and operate multi-family properties. The company was founded in June 1972 and is headquartered in Great Neck, NY.