Comparing H&R Real Estate Investment Trust (OTCMKTS:HRUFF) and Global Net Lease (NYSE:GNL)

H&R Real Estate Investment Trust (OTCMKTS:HRUFF) and Global Net Lease (NYSE:GNL) are both real estate companies, but which is the better investment? We will compare the two companies based on the strength of their valuation, profitability, institutional ownership, risk, earnings, dividends and analyst recommendations.

Institutional and Insider Ownership

24.6% of H&R Real Estate Investment Trust shares are held by institutional investors. Comparatively, 61.2% of Global Net Lease shares are held by institutional investors. 0.6% of Global Net Lease shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares H&R Real Estate Investment Trust and Global Net Lease’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
H&R Real Estate Investment Trust	N/A	N/A	N/A
Global Net Lease	-2.94%	-1.00%	-0.37%

Dividends

H&R Real Estate Investment Trust pays an annual dividend of $1.12 per share and has a dividend yield of 15.7%. Global Net Lease pays an annual dividend of $0.76 per share and has a dividend yield of 8.3%. H&R Real Estate Investment Trust pays out 76.1% 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 Net Lease pays out -271.4% of its earnings in the form of a dividend.

Valuation and Earnings

This table compares H&R Real Estate Investment 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
H&R Real Estate Investment Trust	N/A	N/A	N/A	$1.48	4.86
Global Net Lease	$459.73 million	4.20	-$225.46 million	($0.28)	-32.71

H&R Real Estate Investment Trust has higher earnings, but lower revenue than Global Net Lease. Global Net Lease is trading at a lower price-to-earnings ratio than H&R Real Estate Investment Trust, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for H&R Real Estate Investment Trust and Global Net Lease, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
H&R Real Estate Investment Trust	0	0	0	0	0.00
Global Net Lease	0	1	3	1	3.00

Global Net Lease has a consensus price target of $10.25, suggesting a potential upside of 11.90%. Given Global Net Lease’s stronger consensus rating and higher probable upside, analysts clearly believe Global Net Lease is more favorable than H&R Real Estate Investment Trust.

Summary

Global Net Lease beats H&R Real Estate Investment Trust on 8 of the 14 factors compared between the two stocks.

About H&R Real Estate Investment Trust

H&R REIT is one of Canada's largest real estate investment trusts with total assets of approximately $10.8 billion as at December 31, 2023. H&R REIT has ownership interests in a North American portfolio comprised of high-quality residential, industrial, office and retail properties comprising over 26.9 million square feet. H&R's strategy is to create a simplified, growth-oriented business focused on residential and industrial properties in order to create sustainable long term value for unitholders. H&R plans to sell its office and retail properties as market conditions permit. H&R's target is to be a leading owner, operator and developer of residential and industrial properties, creating value through redevelopment and greenfield development in prime locations within Toronto, Montreal, Vancouver, and high growth U.S. sunbelt and gateway cities.

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.