Global Net Lease (NYSE:GNL) and Healthcare Trust of America (NYSE:HTA) are both finance companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, valuation, institutional ownership, analyst recommendations, earnings, risk and dividends.
Profitability
This table compares Global Net Lease and Healthcare Trust of America's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
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Global Net Lease | 10.07% | 1.97% | 0.85% |
Healthcare Trust of America | 4.67% | 1.84% | 0.92% |
Valuation and Earnings
This table compares Global Net Lease and Healthcare Trust of America's revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Global Net Lease | $306.21 million | 5.28 | $46.48 million | $1.85 | 9.76 |
Healthcare Trust of America | $692.04 million | 8.45 | $30.15 million | $1.64 | 16.31 |
Global Net Lease has higher earnings, but lower revenue than Healthcare Trust of America. Global Net Lease is trading at a lower price-to-earnings ratio than Healthcare Trust of America, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Global Net Lease has a beta of 1.22, suggesting that its share price is 22% more volatile than the S&P 500. Comparatively, Healthcare Trust of America has a beta of 0.58, suggesting that its share price is 42% less volatile than the S&P 500.
Dividends
Global Net Lease pays an annual dividend of $1.60 per share and has a dividend yield of 8.9%. Healthcare Trust of America pays an annual dividend of $1.28 per share and has a dividend yield of 4.8%. Global Net Lease pays out 86.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Healthcare Trust of America pays out 78.0% 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 has raised its dividend for 1 consecutive years and Healthcare Trust of America has raised its dividend for 7 consecutive years.
Analyst Recommendations
This is a breakdown of recent recommendations and price targets for Global Net Lease and Healthcare Trust of America, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
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Global Net Lease | 0 | 1 | 3 | 0 | 2.75 |
Healthcare Trust of America | 0 | 6 | 8 | 0 | 2.57 |
Global Net Lease currently has a consensus price target of $21.1667, indicating a potential upside of 17.20%. Healthcare Trust of America has a consensus price target of $29.7273, indicating a potential upside of 11.13%. Given Global Net Lease's stronger consensus rating and higher probable upside, research analysts clearly believe Global Net Lease is more favorable than Healthcare Trust of America.
Insider and Institutional Ownership
64.8% of Global Net Lease shares are held by institutional investors. Comparatively, 97.7% of Healthcare Trust of America shares are held by institutional investors. 0.1% of Global Net Lease shares are held by company insiders. Comparatively, 1.0% of Healthcare Trust of America shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Summary
Healthcare Trust of America beats Global Net Lease on 9 of the 17 factors compared between the two stocks.