Analyzing Global Net Lease (NYSE:GNL) & Clipper Realty (NYSE:CLPR)

Global Net Lease (NYSE:GNL) and Clipper Realty (NYSE:CLPR) are both small-cap finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, risk, analyst recommendations, valuation, institutional ownership, dividends and profitability.

Analyst Ratings

This is a breakdown of recent recommendations for Global Net Lease and Clipper Realty, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Global Net Lease	0	1	4	1	3.00
Clipper Realty	0	1	0	0	2.00

Global Net Lease presently has a consensus price target of $10.40, suggesting a potential upside of 11.05%. Given Global Net Lease’s stronger consensus rating and higher possible upside, equities analysts plainly believe Global Net Lease is more favorable than Clipper Realty.

Dividends

Global Net Lease pays an annual dividend of $0.76 per share and has a dividend yield of 8.1%. Clipper Realty pays an annual dividend of $0.38 per share and has a dividend yield of 12.0%. Global Net Lease pays out -190.0% of its earnings in the form of a dividend. Clipper Realty pays out -46.9% 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.

Risk and Volatility

Global Net Lease has a beta of 1.01, suggesting that its stock price is 1% more volatile than the S&P 500. Comparatively, Clipper Realty has a beta of 0.96, suggesting that its stock price is 4% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Global Net Lease	-8.72%	-2.90%	-1.07%
Clipper Realty	-7.10%	N/A	-0.87%

Insider and Institutional Ownership

61.2% of Global Net Lease shares are held by institutional investors. Comparatively, 37.6% of Clipper Realty shares are held by institutional investors. 0.6% of Global Net Lease shares are held by company insiders. Comparatively, 53.0% of Clipper Realty shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Global Net Lease and Clipper Realty”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Global Net Lease	$472.16 million	4.20	-$225.46 million	($0.40)	-23.41
Clipper Realty	$151.92 million	0.34	-$19.90 million	($0.81)	-3.91

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

Summary

Global Net Lease beats Clipper Realty on 10 of the 17 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 Clipper Realty

Clipper Realty Inc. (NYSE: CLPR) is a self-administered and self-managed real estate company that acquires, owns, manages, operates, and repositions multifamily residential and commercial properties in the New York metropolitan area, with a portfolio in Manhattan and Brooklyn.