Comparing CyrusOne (NASDAQ:CONE) & Global Net Lease (NYSE:GNL)

CyrusOne (NASDAQ:CONEGet Rating) and Global Net Lease (NYSE:GNLGet Rating) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, dividends, earnings, institutional ownership, risk and profitability.

Valuation & Earnings

This table compares CyrusOne and Global 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
CyrusOne $1.21 billion 9.71 $25.30 million $0.21 430.29
Global Net Lease $391.23 million 4.02 $11.37 million ($0.21) -72.00

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

Profitability

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

Net Margins Return on Equity Return on Assets
CyrusOne 2.10% 1.02% 0.39%
Global Net Lease 2.91% 0.69% 0.27%

Volatility and Risk

CyrusOne has a beta of 0.37, suggesting that its stock price is 63% less volatile than the S&P 500. Comparatively, Global Net Lease has a beta of 1.12, suggesting that its stock price is 12% more volatile than the S&P 500.

Insider and Institutional Ownership

87.9% of CyrusOne shares are held by institutional investors. Comparatively, 69.3% of Global Net Lease shares are held by institutional investors. 0.3% of CyrusOne shares are held by company insiders. Comparatively, 0.2% of Global Net Lease shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Dividends

CyrusOne pays an annual dividend of $2.08 per share and has a dividend yield of 2.3%. Global Net Lease pays an annual dividend of $1.60 per share and has a dividend yield of 10.6%. CyrusOne pays out 990.5% 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 -761.9% of its earnings in the form of a dividend. CyrusOne has increased its dividend for 8 consecutive years. Global Net Lease is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Ratings

This is a breakdown of current ratings for CyrusOne and Global Net Lease, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CyrusOne 0 15 2 0 2.12
Global Net Lease 0 2 2 0 2.50

CyrusOne currently has a consensus price target of $87.26, suggesting a potential downside of 3.43%. Global Net Lease has a consensus price target of $20.46, suggesting a potential upside of 35.28%. Given Global Net Lease’s stronger consensus rating and higher possible upside, analysts clearly believe Global Net Lease is more favorable than CyrusOne.

Summary

CyrusOne beats Global Net Lease on 10 of the 16 factors compared between the two stocks.

CyrusOne Company Profile (Get Rating)

CyrusOne, Inc. is a real estate investment trust, which operates and develops enterprise-class, carrier-neutral, multi-tenant, and single-tenant data center properties. The firm provides data center facilities that protect and ensure the continued operation of IT infrastructure. Its data center properties are purpose-built facilities with redundant power, cooling and telecommunications systems that are not network-specific, enabling customer interconnectivity to a range of telecommunications carriers. The company was founded by David H. Ferdman in 2001 and is headquartered in Dallas, TX.

Global Net Lease Company Profile (Get Rating)

Global Net Lease, Inc. (NYSE: GNL) is a publicly traded real estate investment trust listed on the NYSE 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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