Reviewing W.P. Carey (NYSE:WPC) & Broadstone Net Lease (NYSE:BNL)

W.P. Carey (NYSE:WPC) and Broadstone Net Lease (NYSE:BNL) are both real estate companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, valuation, dividends, institutional ownership, profitability, earnings and risk.

Institutional & Insider Ownership

73.7% of W.P. Carey shares are owned by institutional investors. Comparatively, 89.1% of Broadstone Net Lease shares are owned by institutional investors. 1.0% of W.P. Carey shares are owned by company insiders. Comparatively, 1.0% of Broadstone Net Lease shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Dividends

W.P. Carey pays an annual dividend of $3.80 per share and has a dividend yield of 5.8%. Broadstone Net Lease pays an annual dividend of $1.17 per share and has a dividend yield of 6.7%. W.P. Carey pays out 131.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Broadstone Net Lease pays out 153.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. W.P. Carey has increased its dividend for 2 consecutive years and Broadstone Net Lease has increased its dividend for 4 consecutive years. Broadstone Net Lease is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Valuation & Earnings

This table compares W.P. Carey and Broadstone Net Lease”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
W.P. Carey	$1.72 billion	8.75	$466.36 million	$2.90	22.52
Broadstone Net Lease	$454.14 million	7.43	$96.50 million	$0.76	23.12

W.P. Carey has higher revenue and earnings than Broadstone Net Lease. W.P. Carey is trading at a lower price-to-earnings ratio than Broadstone Net Lease, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for W.P. Carey and Broadstone Net Lease, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
W.P. Carey	0	8	8	0	2.50
Broadstone Net Lease	0	3	8	0	2.73

W.P. Carey presently has a consensus price target of $76.79, suggesting a potential upside of 17.58%. Broadstone Net Lease has a consensus price target of $22.11, suggesting a potential upside of 25.81%. Given Broadstone Net Lease’s stronger consensus rating and higher probable upside, analysts plainly believe Broadstone Net Lease is more favorable than W.P. Carey.

Profitability

This table compares W.P. Carey and Broadstone Net Lease’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
W.P. Carey	35.60%	7.67%	3.54%
Broadstone Net Lease	30.26%	4.86%	2.49%

Volatility & Risk

W.P. Carey has a beta of 0.75, suggesting that its share price is 25% less volatile than the S&P 500. Comparatively, Broadstone Net Lease has a beta of 0.91, suggesting that its share price is 9% less volatile than the S&P 500.

About W.P. Carey

W.P. Carey Inc. is a real estate investment trust that owns and manages commercial properties leased to businesses under long-term net leases. Under these arrangements, tenants typically pay property expenses such as taxes, insurance and maintenance in addition to rent. The company’s portfolio focuses primarily on industrial and warehouse properties, along with retail and self-storage facilities. Its properties serve tenants in the United States and Europe. In 2023, W.P. Carey separated its office properties into a new, publicly traded company as part of a shift toward its other property types.

About Broadstone Net Lease

Broadstone Net Lease, Inc. is an internally managed real estate investment trust that acquires, owns and manages commercial properties leased to businesses under long-term net lease agreements. Its tenants generally assume responsibility for property expenses such as taxes, insurance and maintenance. The company’s portfolio spans property types including industrial, healthcare, retail and office, with properties primarily in the United States and also in Canada. Broadstone was founded in 2007 and is headquartered in Rochester, New York.