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

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

Insider and Institutional Ownership

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

Risk & Volatility

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

Profitability

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

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

Analyst Ratings

This is a summary of current ratings for Global Net Lease and Strawberry Fields REIT, as provided by MarketBeat.com.

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

Global Net Lease currently has a consensus price target of $9.00, suggesting a potential upside of 15.76%. Strawberry Fields REIT has a consensus price target of $13.50, suggesting a potential upside of 27.36%. Given Strawberry Fields REIT’s stronger consensus rating and higher possible upside, analysts clearly believe Strawberry Fields REIT is more favorable than Global Net Lease.

Dividends

Global Net Lease pays an annual dividend of $0.76 per share and has a dividend yield of 9.8%. Strawberry Fields REIT pays an annual dividend of $0.56 per share and has a dividend yield of 5.3%. Global Net Lease pays out -51.4% of its earnings in the form of a dividend. 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. 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.

Earnings & Valuation

This table compares Global Net Lease and Strawberry Fields REIT”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Global Net Lease	$789.55 million	2.25	-$211.91 million	($1.48)	-5.25
Strawberry Fields REIT	$126.56 million	1.04	$2.50 million	$0.58	18.28

Strawberry Fields REIT has lower revenue, but higher earnings 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.

Summary

Strawberry Fields REIT beats Global Net Lease on 10 of the 18 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. 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.

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.