BRAEMAR HOTELS & RESORTS (NYSE:BHR – Get Free Report) and Global Net Lease (NYSE:GNL – Get Free Report) are both small-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, analyst recommendations, earnings, risk, profitability, valuation and institutional ownership.
Risk and Volatility
BRAEMAR HOTELS & RESORTS has a beta of 0.78, indicating that its stock price is 22% less volatile than the S&P 500. Comparatively, Global Net Lease has a beta of 1.03, indicating that its stock price is 3% more volatile than the S&P 500.
Profitability
This table compares BRAEMAR HOTELS & RESORTS and Global Net Lease’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| BRAEMAR HOTELS & RESORTS | -2.24% | -8.68% | -0.80% |
| Global Net Lease | -8.72% | -2.90% | -1.07% |
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| BRAEMAR HOTELS & RESORTS | 1 | 1 | 0 | 0 | 1.50 |
| Global Net Lease | 0 | 1 | 4 | 1 | 3.00 |
Global Net Lease has a consensus target price of $10.40, suggesting a potential upside of 11.41%. Given Global Net Lease’s stronger consensus rating and higher probable upside, analysts plainly believe Global Net Lease is more favorable than BRAEMAR HOTELS & RESORTS.
Institutional & Insider Ownership
64.8% of BRAEMAR HOTELS & RESORTS shares are held by institutional investors. Comparatively, 61.2% of Global Net Lease shares are held by institutional investors. 8.2% of BRAEMAR HOTELS & RESORTS shares are held by company insiders. Comparatively, 0.6% of Global Net Lease shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Earnings & Valuation
This table compares BRAEMAR HOTELS & RESORTS and Global Net Lease”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| BRAEMAR HOTELS & RESORTS | $704.02 million | 0.24 | -$22.32 million | ($0.96) | -2.61 |
| Global Net Lease | $495.29 million | 3.99 | -$225.46 million | ($0.40) | -23.34 |
BRAEMAR HOTELS & RESORTS has higher revenue and earnings than Global Net Lease. Global Net Lease is trading at a lower price-to-earnings ratio than BRAEMAR HOTELS & RESORTS, indicating that it is currently the more affordable of the two stocks.
Dividends
BRAEMAR HOTELS & RESORTS pays an annual dividend of $0.20 per share and has a dividend yield of 8.0%. Global Net Lease pays an annual dividend of $0.76 per share and has a dividend yield of 8.1%. BRAEMAR HOTELS & RESORTS pays out -20.8% of its earnings in the form of a dividend. Global Net Lease pays out -190.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Global Net Lease is clearly the better dividend stock, given its higher yield and lower payout ratio.
Summary
Global Net Lease beats BRAEMAR HOTELS & RESORTS on 10 of the 17 factors compared between the two stocks.
About BRAEMAR HOTELS & RESORTS
Braemar Hotels & Resorts is a conservatively capitalized REIT that invests primarily in high RevPAR, full-service luxury hotels and resorts. We are listed on the New York Stock Exchange under the symbol BHR and are externally-advised by Ashford (NYSE American: AINC).
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.
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