Head-To-Head Analysis: Global Net Lease (NYSE:GNL) vs. Community Healthcare Trust (NYSE:CHCT)

Community Healthcare Trust (NYSE:CHCT) and Global Net Lease (NYSE:GNL) are both small-cap finance companies, but which is the better business? We will compare the two companies based on the strength of their analyst recommendations, institutional ownership, profitability, valuation, risk, dividends and earnings.

Earnings & Valuation

This table compares Community Healthcare Trust and Global Net Lease”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Community Healthcare Trust	$115.79 million	3.74	-$3.18 million	($0.40)	-38.01
Global Net Lease	$805.01 million	2.22	-$131.57 million	($1.43)	-5.69

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

Risk & Volatility

Community Healthcare Trust has a beta of 0.77, meaning that its share price is 23% less volatile than the S&P 500. Comparatively, Global Net Lease has a beta of 1.13, meaning that its share price is 13% more volatile than the S&P 500.

Institutional & Insider Ownership

87.8% of Community Healthcare Trust shares are held by institutional investors. Comparatively, 61.2% of Global Net Lease shares are held by institutional investors. 5.1% of Community Healthcare Trust shares are held by insiders. Comparatively, 0.4% of Global Net Lease shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Dividends

Community Healthcare Trust pays an annual dividend of $1.90 per share and has a dividend yield of 12.5%. Global Net Lease pays an annual dividend of $0.76 per share and has a dividend yield of 9.3%. Community Healthcare Trust pays out -475.0% of its earnings in the form of a dividend. Global Net Lease pays out -53.1% 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. Community Healthcare Trust has increased its dividend for 3 consecutive years. Community Healthcare Trust is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Community Healthcare Trust	-6.27%	-1.66%	-0.76%
Global Net Lease	-48.52%	-10.27%	-3.49%

Analyst Recommendations

This is a breakdown of recent recommendations for Community Healthcare Trust and Global Net Lease, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Community Healthcare Trust	1	1	2	0	2.25
Global Net Lease	0	1	3	1	3.00

Community Healthcare Trust presently has a consensus target price of $18.00, indicating a potential upside of 18.38%. Global Net Lease has a consensus target price of $9.50, indicating a potential upside of 16.78%. Given Community Healthcare Trust’s higher probable upside, equities research analysts clearly believe Community Healthcare Trust is more favorable than Global Net Lease.

Summary

Community Healthcare Trust beats Global Net Lease on 12 of the 18 factors compared between the two stocks.

About Community Healthcare Trust

Community Healthcare Trust Incorporated (the Company”, we”, our”) was organized in the State of Maryland on March 28, 2014. The Company is a fully-integrated healthcare real estate company that owns and acquires real estate properties that are leased to hospitals, doctors, healthcare systems or other healthcare service providers. As of March 31, 2024, the Company had investments of approximately $1.1 billion in 197 real estate properties (including a portion of one property accounted for as a sales-type lease with a gross amount totaling approximately $3.0 million and two properties classified as an asset held for sale with an aggregate amount totaling approximately $7.5 million. The properties are located in 35 states, totaling approximately 4.4 million square feet in the aggregate and were approximately 92.3% leased, excluding real estate assets held for sale, at March 31, 2024 with a weighted average remaining lease term of approximately 6.9 years.

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.