Global Net Lease (GNL) vs. Brookfield Canada Office Properties (BOXC) Critical Review
Global Net Lease (NYSE: GNL) and Brookfield Canada Office Properties (NYSE:BOXC) are both finance companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, risk, earnings, institutional ownership, dividends, valuation and profitability.
This table compares Global Net Lease and Brookfield Canada Office Properties’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Global Net Lease||16.04%||2.91%||1.35%|
|Brookfield Canada Office Properties||7.64%||1.26%||0.65%|
Risk & Volatility
Global Net Lease has a beta of 0.69, indicating that its share price is 31% less volatile than the S&P 500. Comparatively, Brookfield Canada Office Properties has a beta of 0.99, indicating that its share price is 1% less volatile than the S&P 500.
Valuation and Earnings
This table compares Global Net Lease and Brookfield Canada Office Properties’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Global Net Lease||$233.85 million||6.21||$180.89 million||$0.61||35.36|
|Brookfield Canada Office Properties||N/A||N/A||N/A||$1.16||21.52|
Global Net Lease has higher revenue and earnings than Brookfield Canada Office Properties. Brookfield Canada Office Properties 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.
Global Net Lease pays an annual dividend of $2.13 per share and has a dividend yield of 9.9%. Brookfield Canada Office Properties pays an annual dividend of $0.97 per share and has a dividend yield of 3.9%. Global Net Lease pays out 349.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Brookfield Canada Office Properties pays out 83.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
This is a breakdown of recent recommendations and price targets for Global Net Lease and Brookfield Canada Office Properties, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Global Net Lease||0||1||0||0||2.00|
|Brookfield Canada Office Properties||0||3||0||0||2.00|
Global Net Lease currently has a consensus target price of $24.45, suggesting a potential upside of 13.35%. Brookfield Canada Office Properties has a consensus target price of $29.50, suggesting a potential upside of 18.19%. Given Brookfield Canada Office Properties’ higher probable upside, analysts plainly believe Brookfield Canada Office Properties is more favorable than Global Net Lease.
Insider and Institutional Ownership
42.6% of Global Net Lease shares are held by institutional investors. Comparatively, 20.1% of Brookfield Canada Office Properties shares are held by institutional investors. 0.2% of Global Net Lease shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Global Net Lease beats Brookfield Canada Office Properties on 7 of the 11 factors compared between the two stocks.
Global Net Lease Company Profile
Global Net Lease, Inc. is a real estate investment trust. The Company’s business consists of owning, managing, operating, leasing, acquiring, investing in and disposing of real estate assets. It owns and invests in commercial properties principally in the United States, the United Kingdom and continental Europe that are then leased to companies. It was formed to primarily acquire a portfolio of commercial properties, with an emphasis on sale-leaseback transactions involving single tenant net-leased commercial properties. As of December 31, 2016, it owned 310 properties consisting of 22 million rentable square feet. As of December 31, 2016, its owned 310 properties, including 241 properties located in the United States and Puerto Rico, 43 properties located in the United Kingdom and 26 properties located across continental Europe. It may also originate or acquire first mortgage loans secured by real estate. Its business is conducted through Global Net Lease Operating Partnership, L.P.
Brookfield Canada Office Properties Company Profile
Brookfield Canada Office Properties is a Canada-based real estate investment trust (REIT). The Company invests, develops and operates commercial office properties in Toronto, Ottawa, Calgary and Vancouver. The Company’s commercial-property portfolio consists of interests in approximately 25 properties totaling approximately 21.1 million square feet, including approximately 4.0 million square feet of parking and other. The Company’s development portfolio consists of the Brookfield Place Calgary East development site totaling approximately 1.4 million square feet in Calgary. The Company also invests in ongoing maintenance and capital improvement projects. The Company focuses on the markets, which include financial, government and energy sectors, which are primarily located in the cities of Toronto and Calgary. Its properties include 2 Queen Street East, Queen’s Quay Terminal, Exchange Tower, Bankers Hall Retail, Suncor Energy Centre, Jean Edmonds Tower and Royal Centre.
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