Contrasting Broadstone Net Lease (NYSE:BNL) & UMH Properties (NYSE:UMH)

UMH Properties (NYSE:UMH) and Broadstone Net Lease (NYSE:BNL) are both finance companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, risk, profitability, earnings, dividends, analyst recommendations and valuation.

Risk & Volatility

UMH Properties has a beta of 1.03, meaning that its share price is 3% more volatile than the S&P 500. Comparatively, Broadstone Net Lease has a beta of 0.99, meaning that its share price is 1% less volatile than the S&P 500.

Insider & Institutional Ownership

75.4% of UMH Properties shares are owned by institutional investors. Comparatively, 89.1% of Broadstone Net Lease shares are owned by institutional investors. 8.8% of UMH Properties shares are owned by company insiders. Comparatively, 1.0% of Broadstone Net Lease shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Dividends

UMH Properties pays an annual dividend of $0.90 per share and has a dividend yield of 5.8%. Broadstone Net Lease pays an annual dividend of $1.17 per share and has a dividend yield of 5.9%. UMH Properties pays out 1,285.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Broadstone Net Lease pays out 234.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. UMH Properties has increased its dividend for 4 consecutive years and Broadstone Net Lease has increased its dividend for 4 consecutive years. Broadstone Net Lease is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
UMH Properties	10.12%	4.43%	1.63%
Broadstone Net Lease	21.25%	3.17%	1.77%

Analyst Ratings

This is a breakdown of current ratings for UMH Properties and Broadstone Net Lease, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
UMH Properties	0	3	3	0	2.50
Broadstone Net Lease	0	2	9	0	2.82

UMH Properties currently has a consensus price target of $18.00, suggesting a potential upside of 15.87%. Broadstone Net Lease has a consensus price target of $20.22, suggesting a potential upside of 1.35%. Given UMH Properties’ higher possible upside, research analysts clearly believe UMH Properties is more favorable than Broadstone Net Lease.

Earnings & Valuation

This table compares UMH Properties and Broadstone Net Lease”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
UMH Properties	$261.75 million	5.05	$26.50 million	$0.07	221.93
Broadstone Net Lease	$454.14 million	8.41	$96.50 million	$0.50	39.91

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

Summary

Broadstone Net Lease beats UMH Properties on 11 of the 16 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 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.