Head-To-Head Survey: Broadstone Net Lease (NYSE:BNL) vs. Centerspace (NYSE:CSR)

Broadstone Net Lease (NYSE:BNL) and Centerspace (NYSE:CSR) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their risk, institutional ownership, profitability, earnings, valuation, analyst recommendations and dividends.

Profitability

This table compares Broadstone Net Lease and Centerspace’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Broadstone Net Lease	37.62%	5.10%	3.08%
Centerspace	-4.34%	-1.34%	-0.60%

Dividends

Broadstone Net Lease pays an annual dividend of $1.16 per share and has a dividend yield of 6.9%. Centerspace pays an annual dividend of $3.08 per share and has a dividend yield of 4.7%. Broadstone Net Lease pays out 133.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Centerspace pays out -242.5% of its earnings in the form of a dividend.

Valuation & Earnings

This table compares Broadstone Net Lease and Centerspace”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Broadstone Net Lease	$431.80 million	7.37	$155.48 million	$0.87	19.38
Centerspace	$260.98 million	4.23	$41.97 million	($1.27)	-51.93

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

Risk & Volatility

Broadstone Net Lease has a beta of 1.11, indicating that its stock price is 11% more volatile than the S&P 500. Comparatively, Centerspace has a beta of 0.9, indicating that its stock price is 10% less volatile than the S&P 500.

Institutional and Insider Ownership

89.1% of Broadstone Net Lease shares are owned by institutional investors. Comparatively, 79.0% of Centerspace shares are owned by institutional investors. 0.6% of Broadstone Net Lease shares are owned by insiders. Comparatively, 0.9% of Centerspace shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current recommendations and price targets for Broadstone Net Lease and Centerspace, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Broadstone Net Lease	1	4	2	1	2.38
Centerspace	0	4	3	0	2.43

Broadstone Net Lease currently has a consensus price target of $18.60, suggesting a potential upside of 10.32%. Centerspace has a consensus price target of $74.43, suggesting a potential upside of 12.86%. Given Centerspace’s stronger consensus rating and higher possible upside, analysts clearly believe Centerspace is more favorable than Broadstone Net Lease.

Summary

Broadstone Net Lease beats Centerspace on 12 of the 17 factors compared between the two stocks.

About Broadstone Net Lease

Broadstone Net Lease, Inc. (the Corporation) is a Maryland corporation formed on October 18, 2007, that elected to be taxed as a real estate investment trust (REIT) commencing with the taxable year ended December 31, 2008. Broadstone Net Lease, LLC (the Corporation’s operating company, or the OP), is the entity through which the Corporation conducts its business and owns (either directly or through subsidiaries) all of the Corporation’s properties. The Corporation is the sole managing member of the OP. The membership units not owned by the Corporation are referred to as OP Units or non-controlling interests. As the Corporation conducts substantially all of its operations through the OP, it is structured as what is referred to as an umbrella partnership real estate investment trust (UPREIT). The Corporation’s common stock is listed on the New York Stock Exchange under the symbol BNL.

About Centerspace

Centerspace is an owner and operator of apartment communities committed to providing great homes by focusing on integrity and serving others. Founded in 1970, as of September 30, 2023, Centerspace owned interests in 71 apartment communities consisting of 12,785 apartment homes located in Colorado, Minnesota, Montana, Nebraska, North Dakota, and South Dakota. Centerspace was named a Top Workplace for the fourth consecutive year in 2023 by the Minneapolis Star Tribune.