Head-To-Head Analysis: Getty Realty (NYSE:GTY) and Net Lease Office Properties (NYSE:NLOP)

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

Analyst Ratings

This is a summary of current ratings and recommmendations for Getty Realty and Net Lease Office Properties, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Getty Realty	0	3	3	0	2.50
Net Lease Office Properties	1	0	1	0	2.00

Getty Realty presently has a consensus target price of $31.80, suggesting a potential upside of 15.51%. Net Lease Office Properties has a consensus target price of $46.00, suggesting a potential upside of 120.93%. Given Net Lease Office Properties’ higher probable upside, analysts plainly believe Net Lease Office Properties is more favorable than Getty Realty.

Risk & Volatility

Getty Realty has a beta of 0.85, suggesting that its share price is 15% less volatile than the S&P 500. Comparatively, Net Lease Office Properties has a beta of 0.8, suggesting that its share price is 20% less volatile than the S&P 500.

Institutional & Insider Ownership

85.1% of Getty Realty shares are held by institutional investors. Comparatively, 58.3% of Net Lease Office Properties shares are held by institutional investors. 8.8% of Getty Realty shares are held by insiders. Comparatively, 0.7% of Net Lease Office Properties shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Getty Realty	34.76%	7.60%	3.72%
Net Lease Office Properties	-156.16%	-34.31%	-26.04%

Valuation and Earnings

This table compares Getty Realty and Net Lease Office Properties”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Getty Realty	$203.39 million	7.82	$71.06 million	$1.28	21.51
Net Lease Office Properties	$142.25 million	2.17	-$91.47 million	($12.22)	-1.70

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

Summary

Getty Realty beats Net Lease Office Properties on 13 of the 14 factors compared between the two stocks.

About Getty Realty

Getty Realty Corp. is a publicly traded, net lease REIT specializing in the acquisition, financing and development of convenience, automotive and other single tenant retail real estate. As of December 31, 2023, the Company’s portfolio included 1,093 freestanding properties located in 40 states across the United States and Washington, D.C.

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.