Contrasting Strawberry Fields REIT (NASDAQ:STRW) & Global Net Lease (NYSE:GNL)

Strawberry Fields REIT (NASDAQ:STRW) and Global Net Lease (NYSE:GNL) are both small-cap finance companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, valuation, dividends, institutional ownership, analyst recommendations, earnings and profitability.

Valuation and Earnings

This table compares Strawberry Fields REIT and Global Net Lease”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Strawberry Fields REIT	$126.56 million	1.04	$2.50 million	$0.58	18.22
Global Net Lease	$789.55 million	2.14	-$211.91 million	($1.48)	-4.98

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

Profitability

This table compares Strawberry Fields REIT and Global Net Lease’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Strawberry Fields REIT	2.98%	6.64%	0.52%
Global Net Lease	-21.37%	-7.04%	-2.24%

Risk and Volatility

Strawberry Fields REIT has a beta of 0.38, indicating that its stock price is 62% less volatile than the S&P 500. Comparatively, Global Net Lease has a beta of 1.22, indicating that its stock price is 22% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Strawberry Fields REIT and Global Net Lease, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Strawberry Fields REIT	0	0	1	0	3.00
Global Net Lease	0	2	2	1	2.80

Strawberry Fields REIT presently has a consensus target price of $13.50, indicating a potential upside of 27.72%. Global Net Lease has a consensus target price of $9.00, indicating a potential upside of 22.12%. Given Strawberry Fields REIT’s stronger consensus rating and higher probable upside, research analysts clearly believe Strawberry Fields REIT is more favorable than Global Net Lease.

Insider and Institutional Ownership

61.2% of Global Net Lease shares are owned by institutional investors. 10.6% of Strawberry Fields REIT shares are owned by insiders. Comparatively, 0.4% of Global Net Lease shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Dividends

Strawberry Fields REIT pays an annual dividend of $0.56 per share and has a dividend yield of 5.3%. Global Net Lease pays an annual dividend of $0.76 per share and has a dividend yield of 10.3%. Strawberry Fields REIT pays out 96.6% 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 -51.4% of its earnings in the form of a dividend. Strawberry Fields REIT has increased its dividend for 1 consecutive years. Global Net Lease is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Strawberry Fields REIT beats Global Net Lease on 10 of the 18 factors compared between the two stocks.

About Strawberry Fields REIT

Strawberry Fields REIT, Inc. engages in the ownership, acquisition, development, and leasing of skilled nursing and certain other healthcare-related properties. The company was founded by Moishe Gubin in 2014 and is headquartered in South Bend, IN.

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.