Critical Analysis: Global Net Lease (NYSE:GNL) versus Mirvac Group (OTCMKTS:MRVGF)

Mirvac Group (OTCMKTS:MRVGF) and Global Net Lease (NYSE:GNL) are both real estate companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, valuation, dividends, profitability, institutional ownership, analyst recommendations and risk.

Institutional and Insider Ownership

48.6% of Mirvac Group shares are held by institutional investors. Comparatively, 61.2% of Global Net Lease shares are held by institutional investors. 0.6% of Global Net Lease shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Dividends

Mirvac Group pays an annual dividend of $0.09 per share and has a dividend yield of 8.1%. Global Net Lease pays an annual dividend of $0.76 per share and has a dividend yield of 8.4%. Mirvac Group pays out 74.0% of its earnings in the form of a dividend. Global Net Lease pays out -271.4% 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. Global Net Lease is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Ratings

This is a summary of current recommendations and price targets for Mirvac Group and Global Net Lease, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mirvac Group	0	0	0	0	0.00
Global Net Lease	0	2	3	1	2.83

Global Net Lease has a consensus target price of $10.00, suggesting a potential upside of 10.86%. Given Global Net Lease’s stronger consensus rating and higher probable upside, analysts plainly believe Global Net Lease is more favorable than Mirvac Group.

Valuation and Earnings

This table compares Mirvac Group and Global Net Lease”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mirvac Group	N/A	N/A	N/A	$0.12	9.10
Global Net Lease	$495.29 million	3.84	-$225.46 million	($0.28)	-32.21

Mirvac Group has higher earnings, but lower revenue than Global Net Lease. Global Net Lease is trading at a lower price-to-earnings ratio than Mirvac Group, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Mirvac Group and Global Net Lease’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Mirvac Group	N/A	N/A	N/A
Global Net Lease	-2.94%	-1.00%	-0.37%

Summary

Global Net Lease beats Mirvac Group on 9 of the 14 factors compared between the two stocks.

About Mirvac Group

Founded in 1972, Mirvac is an Australian Securities Exchange (ASX) top 50 company with an integrated asset creation and curation capability. For more than 50 years, we've dedicated ourselves to creating extraordinary urban places and experiences. We have over $35 billion of assets under management, together with a $12 billion commercial and mixed use development pipeline, and a $17 billion residential development pipeline, enabling us to deliver innovative and high-quality property for our customers, while driving long-term value for our securityholders.

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.