Rexford Industrial Realty (NYSE:REXR – Get Free Report) and Global Net Lease (NYSE:GNL – Get Free Report) are both mid-cap finance companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, risk, analyst recommendations, profitability, institutional ownership, valuation and earnings.
Analyst Ratings
This is a breakdown of current ratings and target prices for Rexford Industrial Realty and Global Net Lease, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Rexford Industrial Realty | 1 | 8 | 4 | 0 | 2.23 |
| Global Net Lease | 0 | 1 | 4 | 1 | 3.00 |
Rexford Industrial Realty presently has a consensus target price of $41.92, indicating a potential upside of 18.13%. Global Net Lease has a consensus target price of $10.40, indicating a potential upside of 8.96%. Given Rexford Industrial Realty’s higher possible upside, equities research analysts clearly believe Rexford Industrial Realty is more favorable than Global Net Lease.
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Rexford Industrial Realty | $1.00 billion | 7.99 | $212.03 million | $0.93 | 38.16 |
| Global Net Lease | $495.29 million | 4.10 | -$225.46 million | ($1.19) | -8.02 |
Rexford Industrial Realty has higher revenue and earnings than Global Net Lease. Global Net Lease is trading at a lower price-to-earnings ratio than Rexford Industrial Realty, indicating that it is currently the more affordable of the two stocks.
Dividends
Rexford Industrial Realty pays an annual dividend of $1.74 per share and has a dividend yield of 4.9%. Global Net Lease pays an annual dividend of $0.76 per share and has a dividend yield of 8.0%. Rexford Industrial Realty pays out 187.1% 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 pays out -63.9% of its earnings in the form of a dividend. Rexford Industrial Realty has raised its dividend for 4 consecutive years. Global Net Lease is clearly the better dividend stock, given its higher yield and lower payout ratio.
Risk & Volatility
Rexford Industrial Realty has a beta of 1.23, meaning that its share price is 23% more volatile than the S&P 500. Comparatively, Global Net Lease has a beta of 1.03, meaning that its share price is 3% more volatile than the S&P 500.
Profitability
This table compares Rexford Industrial Realty and Global Net Lease’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Rexford Industrial Realty | 23.25% | 2.64% | 1.82% |
| Global Net Lease | -45.52% | -7.64% | -2.73% |
Institutional & Insider Ownership
99.5% of Rexford Industrial Realty shares are owned by institutional investors. Comparatively, 61.2% of Global Net Lease shares are owned by institutional investors. 1.8% of Rexford Industrial Realty shares are owned by insiders. Comparatively, 0.6% of Global Net Lease shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Summary
Rexford Industrial Realty beats Global Net Lease on 13 of the 17 factors compared between the two stocks.
About Rexford Industrial Realty
Rexford Industrial Realty, Inc. is a self-administered and self-managed real estate investment trust, which engages in owning and operating industrial properties in infill markets. The company was founded by Richard S. Ziman on January 18, 2013 and is headquartered in Los Angeles, CA.
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.
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