Head-To-Head Analysis: Healthcare Realty Trust (NYSE:HR) and Global Net Lease (NYSE:GNL)

Global Net Lease (NYSE:GNL) and Healthcare Realty Trust (NYSE:HR) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, valuation, risk, institutional ownership, dividends, profitability and earnings.

Dividends

Global Net Lease pays an annual dividend of $0.76 per share and has a dividend yield of 8.1%. Healthcare Realty Trust pays an annual dividend of $0.96 per share and has a dividend yield of 5.2%. Global Net Lease pays out -63.9% of its earnings in the form of a dividend. Healthcare Realty Trust pays out -135.2% 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Global Net Lease	-45.52%	-7.64%	-2.73%
Healthcare Realty Trust	-20.84%	-5.07%	-2.47%

Analyst Ratings

This is a breakdown of current ratings and price targets for Global Net Lease and Healthcare Realty Trust, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Global Net Lease	0	1	4	1	3.00
Healthcare Realty Trust	1	6	3	0	2.20

Global Net Lease presently has a consensus target price of $10.00, indicating a potential upside of 6.44%. Healthcare Realty Trust has a consensus target price of $18.88, indicating a potential upside of 2.41%. Given Global Net Lease’s stronger consensus rating and higher probable upside, equities analysts plainly believe Global Net Lease is more favorable than Healthcare Realty Trust.

Volatility and Risk

Global Net Lease has a beta of 1.11, indicating that its share price is 11% more volatile than the S&P 500. Comparatively, Healthcare Realty Trust has a beta of 0.96, indicating that its share price is 4% less volatile than the S&P 500.

Insider and Institutional Ownership

61.2% of Global Net Lease shares are owned by institutional investors. 0.4% of Global Net Lease shares are owned by insiders. Comparatively, 0.4% of Healthcare Realty Trust shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Global Net Lease	$495.29 million	4.06	-$225.46 million	($1.19)	-7.89
Healthcare Realty Trust	$1.18 billion	5.45	-$246.07 million	($0.71)	-25.96

Global Net Lease has higher earnings, but lower revenue than Healthcare Realty Trust. Healthcare Realty 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.

Summary

Global Net Lease beats Healthcare Realty Trust on 9 of the 16 factors compared between the two stocks.

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.

About Healthcare Realty Trust

Healthcare Realty Trust, Inc. provides real estate investment services. It owns, leases, manages, acquires, finances, develops, and redevelops income-producing real estate properties associated primarily with the delivery of outpatient healthcare services throughout the United States of America. The company was founded by David R. Emery in 1992 and is headquartered in Nashville, TN.