Broadstone Net Lease (NYSE:BNL) vs. Global Self Storage (NASDAQ:SELF) Critical Review

Broadstone Net Lease (NYSE:BNLGet Rating) and Global Self Storage (NASDAQ:SELFGet Rating) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, valuation, institutional ownership, risk, dividends, earnings and analyst recommendations.

Dividends

Broadstone Net Lease pays an annual dividend of $1.08 per share and has a dividend yield of 5.0%. Global Self Storage pays an annual dividend of $0.26 per share and has a dividend yield of 4.6%. Broadstone Net Lease pays out 147.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Global Self Storage pays out 83.9% 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 has raised its dividend for 1 consecutive years. Broadstone Net Lease is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Earnings & Valuation

This table compares Broadstone Net Lease and Global Self Storage’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Broadstone Net Lease $382.88 million 9.64 $102.43 million $0.73 29.85
Global Self Storage $10.51 million 5.76 $3.28 million $0.31 18.06

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

Insider & Institutional Ownership

78.7% of Broadstone Net Lease shares are held by institutional investors. Comparatively, 22.1% of Global Self Storage shares are held by institutional investors. 0.8% of Broadstone Net Lease shares are held by company insiders. Comparatively, 6.9% of Global Self Storage shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Broadstone Net Lease and Global Self Storage’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Broadstone Net Lease 29.28% 4.29% 2.56%
Global Self Storage 28.96% 6.75% 4.67%

Analyst Ratings

This is a summary of current ratings and recommmendations for Broadstone Net Lease and Global Self Storage, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Broadstone Net Lease 0 3 0 0 2.00
Global Self Storage 0 0 1 0 3.00

Broadstone Net Lease presently has a consensus price target of $21.67, indicating a potential downside of 0.57%. Global Self Storage has a consensus price target of $7.00, indicating a potential upside of 25.00%. Given Global Self Storage’s stronger consensus rating and higher possible upside, analysts clearly believe Global Self Storage is more favorable than Broadstone Net Lease.

Volatility and Risk

Broadstone Net Lease has a beta of 0.95, indicating that its share price is 5% less volatile than the S&P 500. Comparatively, Global Self Storage has a beta of 0.36, indicating that its share price is 64% less volatile than the S&P 500.

Summary

Broadstone Net Lease beats Global Self Storage on 10 of the 17 factors compared between the two stocks.

About Broadstone Net Lease

(Get Rating)

BNL is an internally-managed REIT that acquires, owns, and manages primarily single-tenant commercial real estate properties that are net leased on a long-term basis to a diversified group of tenants. The Company utilizes an investment strategy underpinned by strong fundamental credit analysis and prudent real estate underwriting. As of September 30, 2020, BNL's diversified portfolio consisted of 627 properties in 41 U.S. states and one property in Canada across the industrial, healthcare, restaurant, office, and retail property types, with an aggregate gross asset value of approximately $4.0 billion.

About Global Self Storage

(Get Rating)

Global Self Storage is a self-administered and self-managed REIT that owns, operates, manages, acquires, develops and redevelops self-storage properties. The company's self-storage properties are designed to offer affordable, easily accessible and secure storage space for residential and commercial customers. Through its wholly owned subsidiaries, the company owns and/or manages 13 self-storage properties in Connecticut, Illinois, Indiana, New York, Ohio, Pennsylvania, South Carolina, and Oklahoma.

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