Financial Analysis: UMH Properties (NYSE:UMH) versus Net Lease Office Properties (NYSE:NLOP)

UMH Properties (NYSE:UMH) and Net Lease Office Properties (NYSE:NLOP) are both small-cap finance companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, profitability, analyst recommendations, valuation, risk, dividends and institutional ownership.

Insider and Institutional Ownership

75.4% of UMH Properties shares are owned by institutional investors. Comparatively, 58.3% of Net Lease Office Properties shares are owned by institutional investors. 8.6% of UMH Properties shares are owned by 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.

Valuation & Earnings

This table compares UMH Properties and Net Lease Office Properties’ top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
UMH Properties	$220.93 million	5.03	$8.01 million	($0.15)	-105.29
Net Lease Office Properties	$174.97 million	2.08	-$131.75 million	N/A	N/A

UMH Properties has higher revenue and earnings than Net Lease Office Properties.

Profitability

This table compares UMH Properties and Net Lease Office Properties’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
UMH Properties	3.42%	1.92%	0.55%
Net Lease Office Properties	N/A	N/A	N/A

Dividends

UMH Properties pays an annual dividend of $0.82 per share and has a dividend yield of 5.2%. Net Lease Office Properties pays an annual dividend of $0.34 per share and has a dividend yield of 1.4%. UMH Properties pays out -546.6% of its earnings in the form of a dividend. UMH Properties has increased its dividend for 3 consecutive years. UMH Properties is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Recommendations

This is a summary of current recommendations for UMH Properties and Net Lease Office Properties, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
UMH Properties	0	2	2	0	2.50
Net Lease Office Properties	0	0	1	0	3.00

UMH Properties presently has a consensus target price of $19.00, suggesting a potential upside of 20.29%. Net Lease Office Properties has a consensus target price of $60.00, suggesting a potential upside of 144.20%. Given Net Lease Office Properties’ stronger consensus rating and higher probable upside, analysts clearly believe Net Lease Office Properties is more favorable than UMH Properties.

Summary

UMH Properties beats Net Lease Office Properties on 12 of the 14 factors compared between the two stocks.

About UMH Properties

UMH Properties, Inc., which was organized in 1968, is a public equity REIT that owns and operates 135 manufactured home communities containing approximately 25,800 developed homesites. These communities are located in New Jersey, New York, Ohio, Pennsylvania, Tennessee, Indiana, Michigan, Maryland, Alabama, South Carolina and Georgia. UMH also has an ownership interest in and operates two communities in Florida, containing 363 sites, through its joint venture with Nuveen Real Estate

About Net Lease Office Properties

Net Lease Office Properties (NYSE: NLOP) is a publicly traded real estate investment trust with a portfolio of 59 high-quality office properties, totaling approximately 8.7 million leasable square feet primarily leased to corporate tenants on a single-tenant net lease basis. The vast majority of the office properties owned by NLOP are located in the U.S., with the balance in Europe. The portfolio consists of 62 corporate tenants operating in a variety of industries, generating annualized based rent (ABR) of approximately $145 million. NLOP's business plan is to focus on realizing value for its shareholders primarily through strategic asset management and disposition of its property portfolio over time. Given WPC's extensive knowledge of the portfolio, NLOP is externally managed and advised by wholly owned affiliates of WPC to successfully execute on its business strategy. Over the course of its 50-year history, WPC has developed significant expertise in the single-tenant office real estate sector, including the operation, leasing, acquisition and development of assets through many market cycles, and has a proven track record of execution.