Head to Head Analysis: Net Lease Office Properties (NLOP) versus Its Rivals

Net Lease Office Properties (NYSE:NLOP) is one of 111 publicly-traded companies in the “Diversified REITs” industry, but how does it weigh in compared to its competitors? We will compare Net Lease Office Properties to similar companies based on the strength of its earnings, risk, valuation, dividends, profitability, institutional ownership and analyst recommendations.

Profitability

This table compares Net Lease Office Properties and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Net Lease Office Properties	-59.82%	-16.92%	-12.66%
Net Lease Office Properties Competitors	-35.53%	-4.25%	0.61%

Institutional & Insider Ownership

58.3% of Net Lease Office Properties shares are owned by institutional investors. Comparatively, 39.1% of shares of all “Diversified REITs” companies are owned by institutional investors. 0.7% of Net Lease Office Properties shares are owned by company insiders. Comparatively, 11.9% of shares of all “Diversified REITs” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Volatility and Risk

Net Lease Office Properties has a beta of 0.7, suggesting that its stock price is 30% less volatile than the S&P 500. Comparatively, Net Lease Office Properties’ competitors have a beta of 1.44, suggesting that their average stock price is 44% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Net Lease Office Properties and its competitors, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Net Lease Office Properties	1	0	0	0	1.00
Net Lease Office Properties Competitors	494	2471	1970	23	2.31

As a group, “Diversified REITs” companies have a potential upside of 8.20%. Given Net Lease Office Properties’ competitors stronger consensus rating and higher probable upside, analysts clearly believe Net Lease Office Properties has less favorable growth aspects than its competitors.

Earnings and Valuation

This table compares Net Lease Office Properties and its competitors gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Net Lease Office Properties	$118.92 million	-$145.26 million	-2.94
Net Lease Office Properties Competitors	$196.62 million	$18.17 million	6.30

Net Lease Office Properties’ competitors have higher revenue and earnings than Net Lease Office Properties. Net Lease Office Properties is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Summary

Net Lease Office Properties competitors beat Net Lease Office Properties on 12 of the 13 factors compared.

Net Lease Office Properties Company Profile

Net Lease Office Properties (NYSE: NLOP) is a publicly traded real estate investment trust with a portfolio of 59 high-quality office properties, totaling approximately 8.7 million leasable square feet primarily leased to corporate tenants on a single-tenant net lease basis. The vast majority of the office properties owned by NLOP are located in the U.S., with the balance in Europe. The portfolio consists of 62 corporate tenants operating in a variety of industries, generating annualized based rent (ABR) of approximately $145 million. NLOP's business plan is to focus on realizing value for its shareholders primarily through strategic asset management and disposition of its property portfolio over time. Given WPC's extensive knowledge of the portfolio, NLOP is externally managed and advised by wholly owned affiliates of WPC to successfully execute on its business strategy. Over the course of its 50-year history, WPC has developed significant expertise in the single-tenant office real estate sector, including the operation, leasing, acquisition and development of assets through many market cycles, and has a proven track record of execution.