Analyzing Global Net Lease (NYSE:GNL) & Healthcare Realty Trust (NYSE:HR)

Healthcare Realty Trust (NYSE:HR) and Global Net Lease (NYSE:GNL) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their profitability, institutional ownership, valuation, risk, analyst recommendations, earnings and dividends.

Analyst Recommendations

This is a breakdown of recent recommendations for Healthcare Realty Trust and Global Net Lease, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Healthcare Realty Trust	1	6	3	0	2.20
Global Net Lease	0	1	4	1	3.00

Healthcare Realty Trust presently has a consensus target price of $18.88, suggesting a potential upside of 2.69%. Global Net Lease has a consensus target price of $10.00, suggesting a potential upside of 7.99%. Given Global Net Lease’s stronger consensus rating and higher possible upside, analysts plainly believe Global Net Lease is more favorable than Healthcare Realty Trust.

Dividends

Healthcare Realty Trust pays an annual dividend of $0.96 per share and has a dividend yield of 5.2%. Global Net Lease pays an annual dividend of $0.76 per share and has a dividend yield of 8.2%. Healthcare Realty Trust pays out -135.2% of its earnings in the form of a dividend. Global Net Lease pays out -63.9% 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.

Insider & Institutional Ownership

61.2% of Global Net Lease shares are owned by institutional investors. 0.4% of Healthcare Realty Trust shares are owned by insiders. Comparatively, 0.4% of Global Net Lease shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Volatility & Risk

Healthcare Realty Trust has a beta of 0.96, meaning that its share price is 4% less volatile than the S&P 500. Comparatively, Global Net Lease has a beta of 1.11, meaning that its share price is 11% more volatile than the S&P 500.

Profitability

This table compares Healthcare Realty Trust and Global Net Lease’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Healthcare Realty Trust	-20.84%	-5.07%	-2.47%
Global Net Lease	-45.52%	-7.64%	-2.73%

Valuation and Earnings

This table compares Healthcare Realty Trust and Global Net Lease”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Healthcare Realty Trust	$1.18 billion	5.43	-$246.07 million	($0.71)	-25.89
Global Net Lease	$495.29 million	4.00	-$225.46 million	($1.19)	-7.78

Global Net Lease has lower revenue, but higher earnings than Healthcare Realty Trust. Healthcare Realty Trust 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

Global Net Lease beats Healthcare Realty Trust on 9 of the 16 factors compared between the two stocks.

About Healthcare Realty Trust

Healthcare Realty Trust, Inc. provides real estate investment services. It owns, leases, manages, acquires, finances, develops, and redevelops income-producing real estate properties associated primarily with the delivery of outpatient healthcare services throughout the United States of America. The company was founded by David R. Emery in 1992 and is headquartered in Nashville, TN.

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.