Head-To-Head Contrast: Broadstone Net Lease (NYSE:BNL) & Invitation Home (NYSE:INVH)

Invitation Home (NYSE:INVH) and Broadstone Net Lease (NYSE:BNL) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, dividends, profitability, analyst recommendations, valuation, institutional ownership and earnings.

Risk and Volatility

Invitation Home has a beta of 0.84, suggesting that its stock price is 16% less volatile than the S&P 500. Comparatively, Broadstone Net Lease has a beta of 0.94, suggesting that its stock price is 6% less volatile than the S&P 500.

Insider & Institutional Ownership

96.8% of Invitation Home shares are owned by institutional investors. Comparatively, 89.1% of Broadstone Net Lease shares are owned by institutional investors. 0.3% of Invitation Home shares are owned by insiders. Comparatively, 1.0% of Broadstone Net Lease shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Dividends

Invitation Home pays an annual dividend of $1.20 per share and has a dividend yield of 4.0%. Broadstone Net Lease pays an annual dividend of $1.17 per share and has a dividend yield of 5.5%. Invitation Home pays out 126.3% 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 180.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Invitation Home has raised its dividend for 1 consecutive years and Broadstone Net Lease has raised 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.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Invitation Home and Broadstone Net Lease, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Invitation Home	1	10	10	0	2.43
Broadstone Net Lease	0	4	7	0	2.64

Invitation Home presently has a consensus target price of $32.47, indicating a potential upside of 9.13%. Broadstone Net Lease has a consensus target price of $22.00, indicating a potential upside of 3.02%. Given Invitation Home’s higher possible upside, equities research analysts plainly believe Invitation Home is more favorable than Broadstone Net Lease.

Profitability

This table compares Invitation Home and Broadstone Net Lease’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Invitation Home	20.88%	6.29%	3.20%
Broadstone Net Lease	27.01%	4.17%	2.25%

Earnings and Valuation

This table compares Invitation Home and Broadstone Net Lease”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Invitation Home	$2.73 billion	6.48	$587.92 million	$0.95	31.32
Broadstone Net Lease	$454.14 million	9.00	$96.50 million	$0.65	32.85

Invitation Home has higher revenue and earnings than Broadstone Net Lease. Invitation Home 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.

Summary

Invitation Home beats Broadstone Net Lease on 9 of the 17 factors compared between the two stocks.

About Invitation Home

Invitation Homes, an S&P 500 company, is the nation's premier single-family home leasing and management company, meeting changing lifestyle demands by providing access to high-quality, updated homes with valued features such as close proximity to jobs and access to good schools. The company's mission, Together with you, we make a house a home, reflects its commitment to providing homes where individuals and families can thrive and high-touch service that continuously enhances residents' living experiences.

About Broadstone Net Lease

Broadstone Net Lease, Inc. (the Corporation) is a Maryland corporation formed on October 18, 2007, that elected to be taxed as a real estate investment trust (REIT) commencing with the taxable year ended December 31, 2008. Broadstone Net Lease, LLC (the Corporation’s operating company, or the OP), is the entity through which the Corporation conducts its business and owns (either directly or through subsidiaries) all of the Corporation’s properties. The Corporation is the sole managing member of the OP. The membership units not owned by the Corporation are referred to as OP Units or non-controlling interests. As the Corporation conducts substantially all of its operations through the OP, it is structured as what is referred to as an umbrella partnership real estate investment trust (UPREIT). The Corporation’s common stock is listed on the New York Stock Exchange under the symbol BNL.