Office Properties Income Trust (NASDAQ:OPI) vs. Broadstone Net Lease (NYSE:BNL) Head-To-Head Survey

Office Properties Income Trust (NASDAQ:OPI) and Broadstone Net Lease (NYSE:BNL) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, dividends, earnings, profitability, valuation, institutional ownership and analyst recommendations.

Earnings and Valuation

This table compares Office Properties Income Trust and Broadstone Net Lease”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Office Properties Income Trust	$466.97 million	0.00	-$136.11 million	($4.90)	0.00
Broadstone Net Lease	$431.80 million	7.64	$162.44 million	$0.47	37.10

Broadstone Net Lease has lower revenue, but higher earnings than Office Properties Income Trust. Office Properties Income Trust 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.

Dividends

Office Properties Income Trust pays an annual dividend of $0.04 per share and has a dividend yield of 250.0%. Broadstone Net Lease pays an annual dividend of $1.16 per share and has a dividend yield of 6.7%. Office Properties Income Trust pays out -0.8% of its earnings in the form of a dividend. Broadstone Net Lease pays out 246.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Broadstone Net Lease has raised its dividend for 4 consecutive years. Office Properties Income Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Office Properties Income Trust and Broadstone Net Lease, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Office Properties Income Trust	1	0	0	0	1.00
Broadstone Net Lease	0	3	8	0	2.73

Broadstone Net Lease has a consensus price target of $20.10, suggesting a potential upside of 15.29%. Given Broadstone Net Lease’s stronger consensus rating and higher possible upside, analysts clearly believe Broadstone Net Lease is more favorable than Office Properties Income Trust.

Profitability

This table compares Office Properties Income Trust and Broadstone Net Lease’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Office Properties Income Trust	-62.99%	-25.56%	-8.02%
Broadstone Net Lease	20.04%	2.93%	1.69%

Institutional & Insider Ownership

64.4% of Office Properties Income Trust shares are owned by institutional investors. Comparatively, 89.1% of Broadstone Net Lease shares are owned by institutional investors. 1.8% of Office Properties Income Trust shares are owned by insiders. Comparatively, 0.6% of Broadstone Net Lease shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Volatility & Risk

Office Properties Income Trust has a beta of 1.71, meaning that its stock price is 71% more volatile than the S&P 500. Comparatively, Broadstone Net Lease has a beta of 1.03, meaning that its stock price is 3% more volatile than the S&P 500.

Summary

Broadstone Net Lease beats Office Properties Income Trust on 12 of the 17 factors compared between the two stocks.

About Office Properties Income Trust

Office Properties Income Trust is a real estate investment trust. It owns, operates, and leases office buildings to single tenants and multi-tenant buildings. The company was founded on February 17, 2009 and is headquartered in Newton, MA.

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.