Financial Contrast: Gadsden Properties (OTCMKTS:GADS) and Broadstone Net Lease (NYSE:BNL)

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

Valuation and Earnings

This table compares Broadstone Net Lease and Gadsden Properties”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Broadstone Net Lease	$454.14 million	8.11	$96.50 million	$0.50	38.49
Gadsden Properties	N/A	N/A	N/A	N/A	N/A

Broadstone Net Lease has higher revenue and earnings than Gadsden Properties.

Risk and Volatility

Broadstone Net Lease has a beta of 0.99, indicating that its share price is 1% less volatile than the S&P 500. Comparatively, Gadsden Properties has a beta of -8.77, indicating that its share price is 977% less volatile than the S&P 500.

Institutional & Insider Ownership

89.1% of Broadstone Net Lease shares are held by institutional investors. 0.6% of Broadstone Net Lease shares are held by company insiders. Comparatively, 5.0% of Gadsden Properties shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Broadstone Net Lease	21.25%	3.17%	1.77%
Gadsden Properties	N/A	N/A	N/A

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Broadstone Net Lease	0	2	9	0	2.82
Gadsden Properties	0	0	0	0	0.00

Broadstone Net Lease currently has a consensus target price of $20.20, indicating a potential upside of 4.96%. Given Broadstone Net Lease’s stronger consensus rating and higher probable upside, research analysts clearly believe Broadstone Net Lease is more favorable than Gadsden Properties.

Summary

Broadstone Net Lease beats Gadsden Properties on 9 of the 10 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 Gadsden Properties

Gadsden Properties, Inc. is a Nevada corporation that was formed on December 28, 2010. Gadsden concentrates primarily on investments in high quality income-producing assets, residential developments and other opportunistic commercial properties in secondary and tertiary markets across the United States. The Company derives value from smaller, flexible retail investments that range from $5 million to $50 million and off-market mixed-use properties ranging from $50 million to $250 million. As a result of this chosen strategy, we believe that Gadsden is developing a unique competitive advantage that generally allows the Company to invest in markets and assets that are often overlooked by larger institutional investors, such as publicly-traded REITs and other large institutional investors. As part of its strategy, Gadsden attracts specific sellers that prefer the tax deferral advantages offered through issuing operating partnership units in exchange for their properties. These real estate assets are typically operated by independent owners that are seeking to monetize their real estate holdings, and who are typically not well capitalized or well-seasoned real estate operators. These transactions create a variety of outcomes for Gadsden and the sellers typically resulting in lease-up and value-added opportunities that may not be otherwise achieved.