Excel Trust (EXL) versus Global Net Lease (GNL) Head to Head Analysis

Excel Trust (NYSE: EXL) and Global Net Lease (NYSE:GNL) are both small-cap commercial reits – nec companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, earnings, valuation, dividends, profitability, risk and analyst recommendations.

Analyst Ratings

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Excel Trust 0 0 0 0 N/A
Global Net Lease 0 2 0 0 2.00

Global Net Lease has a consensus target price of $26.00, suggesting a potential upside of 61.09%. Given Global Net Lease’s higher possible upside, analysts clearly believe Global Net Lease is more favorable than Excel Trust.

Profitability

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

Net Margins Return on Equity Return on Assets
Excel Trust 9.45% 0.65% 0.88%
Global Net Lease 12.65% 2.29% 1.06%

Volatility and Risk

Excel Trust has a beta of 0.49, suggesting that its share price is 51% less volatile than the S&P 500. Comparatively, Global Net Lease has a beta of 0.45, suggesting that its share price is 55% less volatile than the S&P 500.

Earnings and Valuation

This table compares Excel Trust and Global Net Lease’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Excel Trust N/A N/A N/A $0.26 60.92
Global Net Lease $214.17 million 5.07 $47.14 million $0.49 32.94

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

Institutional & Insider Ownership

45.8% of Global Net Lease shares are owned by institutional investors. 0.2% of Global Net Lease shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Dividends

Global Net Lease pays an annual dividend of $2.13 per share and has a dividend yield of 13.2%. Excel Trust does not pay a dividend. Global Net Lease pays out 434.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Summary

Global Net Lease beats Excel Trust on 9 of the 12 factors compared between the two stocks.

About Excel Trust

Excel Trust, Inc. is a real estate investment trust (REIT). The Company is a vertically integrated, self-administered, self-managed real estate firm with the principal objective of acquiring, financing, developing, leasing, owning and managing community and power centers, grocery anchored neighborhood centers and freestanding retail properties. It operates through three segments: retail properties, multi-family properties and office properties. It owns approximately 38 consolidated retail operating properties with a total of approximately 7.2 million square feet of gross leasable area (GLA). The multi-family segment consists of apartment units at one retail property, West Broad Village, which is located in Richmond, Virginia. The office segment consists of two properties, Excel Centre, a portion of which is utilized as its headquarters, and the Promenade Corporate Center. These office properties total approximately 338,339 square feet of GLA.

About Global Net Lease

Global Net Lease, Inc. is a real estate investment trust. The Company’s business consists of owning, managing, operating, leasing, acquiring, investing in and disposing of real estate assets. It owns and invests in commercial properties principally in the United States, the United Kingdom and continental Europe that are then leased to companies. It was formed to primarily acquire a portfolio of commercial properties, with an emphasis on sale-leaseback transactions involving single tenant net-leased commercial properties. As of December 31, 2016, it owned 310 properties consisting of 22 million rentable square feet. As of December 31, 2016, its owned 310 properties, including 241 properties located in the United States and Puerto Rico, 43 properties located in the United Kingdom and 26 properties located across continental Europe. It may also originate or acquire first mortgage loans secured by real estate. Its business is conducted through Global Net Lease Operating Partnership, L.P.

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