Global Net Lease (NYSE:GNL – Get Free Report) and Modiv Industrial (NYSE:MDV – Get Free Report) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, profitability, analyst recommendations, dividends, risk, valuation and institutional ownership.
Risk & Volatility
Global Net Lease has a beta of 1.35, indicating that its stock price is 35% more volatile than the S&P 500. Comparatively, Modiv Industrial has a beta of -0.38, indicating that its stock price is 138% less volatile than the S&P 500.
Institutional and Insider Ownership
75.6% of Global Net Lease shares are held by institutional investors. Comparatively, 7.3% of Modiv Industrial shares are held by institutional investors. 0.2% of Global Net Lease shares are held by company insiders. Comparatively, 4.6% of Modiv Industrial shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Global Net Lease||1||0||1||0||2.00|
Global Net Lease presently has a consensus price target of $14.33, indicating a potential upside of 62.33%. Modiv Industrial has a consensus price target of $17.00, indicating a potential upside of 12.43%. Given Global Net Lease’s higher probable upside, equities research analysts plainly believe Global Net Lease is more favorable than Modiv Industrial.
This table compares Global Net Lease and Modiv Industrial’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Global Net Lease||-43.74%||-10.04%||-3.49%|
Global Net Lease pays an annual dividend of $1.41 per share and has a dividend yield of 16.0%. Modiv Industrial pays an annual dividend of $1.15 per share and has a dividend yield of 7.6%. Global Net Lease pays out -86.0% of its earnings in the form of a dividend. Modiv Industrial pays out -100.0% 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.
Valuation and Earnings
This table compares Global Net Lease and Modiv Industrial’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Global Net Lease||$402.29 million||5.06||$12.02 million||($1.64)||-5.38|
|Modiv Industrial||$50.80 million||2.26||-$3.29 million||($1.15)||-13.15|
Global Net Lease has higher revenue and earnings than Modiv Industrial. Modiv Industrial 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.
Global Net Lease beats Modiv Industrial on 8 of the 15 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. They are 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 Modiv Industrial
Modiv Inc. is an internally managed REIT that acquires, owns, and manages a portfolio of single-tenant net-lease real estate. The Company actively acquires critical industrial manufacturing properties with long-term leases to tenants that fuel the national economy and strengthen the nation's supply chains. Driven by an investor-first focus, the Modiv name reflects its commitment to providing investors with Monthly Dividends. As of May 15, 2023, Modiv had a $634 million real estate portfolio (based on estimated fair value) comprised of 4.3 million square feet of aggregate leasable area.
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