Global Net Lease (NYSE:GNL – Get Free Report) and Ladder Capital (NYSE:LADR – Get Free Report) are both small-cap finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, profitability, institutional ownership, earnings, dividends, risk and analyst recommendations.
Analyst Recommendations
This is a breakdown of recent recommendations and price targets for Global Net Lease and Ladder Capital, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Global Net Lease | 1 | 0 | 0 | 0 | 1.00 |
| Ladder Capital | 0 | 1 | 4 | 0 | 2.80 |
Global Net Lease currently has a consensus price target of $14.00, indicating a potential upside of 26.53%. Ladder Capital has a consensus price target of $12.00, indicating a potential upside of 12.78%. Given Global Net Lease’s higher probable upside, analysts plainly believe Global Net Lease is more favorable than Ladder Capital.
Insider and Institutional Ownership
Dividends
Global Net Lease pays an annual dividend of $1.60 per share and has a dividend yield of 14.5%. Ladder Capital pays an annual dividend of $0.92 per share and has a dividend yield of 8.6%. Global Net Lease pays out -363.6% of its earnings in the form of a dividend. Ladder Capital pays out 82.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Ladder Capital 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.
Profitability
This table compares Global Net Lease and Ladder Capital’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Global Net Lease | -6.62% | -1.75% | -0.62% |
| Ladder Capital | 24.43% | 9.31% | 2.44% |
Risk & Volatility
Global Net Lease has a beta of 1.29, meaning that its stock price is 29% more volatile than the S&P 500. Comparatively, Ladder Capital has a beta of 1.89, meaning that its stock price is 89% more volatile than the S&P 500.
Earnings & Valuation
This table compares Global Net Lease and Ladder Capital’s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Global Net Lease | $378.86 million | 3.05 | $12.02 million | ($0.44) | -25.15 |
| Ladder Capital | $544.59 million | 2.48 | $142.22 million | $1.12 | 9.50 |
Ladder Capital has higher revenue and earnings than Global Net Lease. Global Net Lease is trading at a lower price-to-earnings ratio than Ladder Capital, indicating that it is currently the more affordable of the two stocks.
Summary
Ladder Capital beats Global Net Lease on 12 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 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 Ladder Capital
Ladder Capital Corp operates as an internally-managed real estate investment trust in the United States. The company operates through three segments: Loans, Securities, and Real Estate. The Loans segment originates conduit first mortgage loans that are secured by cash-flowing commercial real estate; and originates and invests in balance sheet first mortgage loans secured by commercial real estate properties that are undergoing transition, including lease-up, sell-out, and renovation or repositioning. It also invests in note purchase financings, subordinated debt, mezzanine debt, and other structured finance products related to commercial real estate. The Securities segment invests in commercial mortgage-backed securities and the U.S. Agency Securities. This segment also invests in corporate bonds and equity securities. The Real Estate segment owns and invests in a portfolio of commercial and residential real estate properties, such as leased properties, office buildings, student housing portfolios, hotels, industrial buildings, shopping center, and condominium units. The company qualifies as a real estate investment trust for federal income tax purposes. It generally would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. The company was founded in 2008 and is headquartered in New York, New York.
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