Head-To-Head Review: Broadstone Net Lease (NYSE:BNL) and InterRent Real Estate Investment Trust (OTCMKTS:IIPZF)

Broadstone Net Lease (NYSE:BNL) and InterRent Real Estate Investment Trust (OTCMKTS:IIPZF) are both finance companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, dividends, institutional ownership, risk, valuation, earnings and analyst recommendations.

Dividends

Broadstone Net Lease pays an annual dividend of $1.16 per share and has a dividend yield of 6.4%. InterRent Real Estate Investment Trust pays an annual dividend of $0.29 per share and has a dividend yield of 3.0%. Broadstone Net Lease pays out 223.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. InterRent Real Estate Investment Trust pays out -32.2% of its earnings in the form of a dividend. 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 Recommendations

This is a summary of recent ratings and target prices for Broadstone Net Lease and InterRent Real Estate Investment Trust, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Broadstone Net Lease	0	2	5	1	2.88
InterRent Real Estate Investment Trust	0	0	0	3	4.00

Broadstone Net Lease presently has a consensus target price of $19.43, suggesting a potential upside of 7.31%. Given Broadstone Net Lease’s higher possible upside, research analysts plainly believe Broadstone Net Lease is more favorable than InterRent Real Estate Investment Trust.

Earnings and Valuation

This table compares Broadstone Net Lease and InterRent Real Estate Investment Trust”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Broadstone Net Lease	$431.80 million	7.93	$162.44 million	$0.52	34.82
InterRent Real Estate Investment Trust	$179.73 million	7.53	-$113.59 million	($0.90)	-10.77

Broadstone Net Lease has higher revenue and earnings than InterRent Real Estate Investment Trust. InterRent Real Estate Investment Trust 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.

Institutional & Insider Ownership

89.1% of Broadstone Net Lease shares are owned by institutional investors. 0.6% of Broadstone Net Lease shares are owned by company insiders. Comparatively, 6.8% of InterRent Real Estate Investment Trust shares are owned 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.

Volatility and Risk

Broadstone Net Lease has a beta of 1.01, indicating that its stock price is 1% more volatile than the S&P 500. Comparatively, InterRent Real Estate Investment Trust has a beta of 0.94, indicating that its stock price is 6% less volatile than the S&P 500.

Profitability

This table compares Broadstone Net Lease and InterRent Real Estate Investment Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Broadstone Net Lease	22.37%	3.19%	1.88%
InterRent Real Estate Investment Trust	-74.48%	-7.71%	-4.37%

Summary

Broadstone Net Lease beats InterRent Real Estate Investment Trust on 14 of the 18 factors compared between the two stocks.

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.

About InterRent Real Estate Investment Trust

InterRent?REIT is a growth-oriented real estate investment trust engaged in increasing Unitholder value and creating a growing and sustainable distribution?through the acquisition and ownership of multi-residential properties. InterRent’s strategy is to expand its portfolio primarily within?markets that have exhibited stable market vacancies,?sufficient suites available to attain the critical mass necessary to implement?an efficient portfolio management structure, and?offer opportunities for accretive acquisitions. InterRent’s primary objectives are to use the proven industry experience of the Trustees,?Management and Operational Team to: (i)?to grow both funds from operations per Unit and net asset value per Unit through investments in a diversified portfolio of multi-residential properties; (ii)?to provide Unitholders with sustainable and growing cash distributions, payable monthly; and (iii)?to maintain a conservative payout ratio and balance sheet.