Broadstone Net Lease (NYSE:BNL) versus W.P. Carey (NYSE:WPC) Head to Head Analysis

Broadstone Net Lease (NYSE:BNL) and W.P. Carey (NYSE:WPC) are both real estate companies, but which is the better business? We will compare the two companies based on the strength of their valuation, institutional ownership, earnings, profitability, risk, analyst recommendations and dividends.

Volatility and Risk

Broadstone Net Lease has a beta of 0.91, suggesting that its stock price is 9% less volatile than the S&P 500. Comparatively, W.P. Carey has a beta of 0.75, suggesting that its stock price is 25% less volatile than the S&P 500.

Dividends

Broadstone Net Lease pays an annual dividend of $1.17 per share and has a dividend yield of 6.7%. W.P. Carey pays an annual dividend of $3.80 per share and has a dividend yield of 5.8%. Broadstone Net Lease pays out 153.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. W.P. Carey pays out 131.0% 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 increased its dividend for 4 consecutive years and W.P. Carey has increased its dividend for 2 consecutive years. Broadstone Net Lease is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Earnings and Valuation

This table compares Broadstone Net Lease and W.P. Carey”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Broadstone Net Lease	$454.14 million	7.43	$96.50 million	$0.76	23.12
W.P. Carey	$1.72 billion	8.75	$466.36 million	$2.90	22.52

W.P. Carey has higher revenue and earnings than Broadstone Net Lease. W.P. Carey 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Broadstone Net Lease	30.26%	4.86%	2.49%
W.P. Carey	35.60%	7.67%	3.54%

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Broadstone Net Lease and W.P. Carey, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Broadstone Net Lease	0	3	8	0	2.73
W.P. Carey	0	8	8	0	2.50

Broadstone Net Lease presently has a consensus target price of $22.11, indicating a potential upside of 25.81%. W.P. Carey has a consensus target price of $76.79, indicating a potential upside of 17.58%. Given Broadstone Net Lease’s stronger consensus rating and higher possible upside, research analysts clearly believe Broadstone Net Lease is more favorable than W.P. Carey.

Institutional & Insider Ownership

89.1% of Broadstone Net Lease shares are owned by institutional investors. Comparatively, 73.7% of W.P. Carey shares are owned by institutional investors. 1.0% of Broadstone Net Lease shares are owned by insiders. Comparatively, 1.0% of W.P. Carey shares are owned by 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.

About Broadstone Net Lease

Broadstone Net Lease, Inc. is an internally managed real estate investment trust that acquires, owns and manages commercial properties leased to businesses under long-term net lease agreements. Its tenants generally assume responsibility for property expenses such as taxes, insurance and maintenance. The company’s portfolio spans property types including industrial, healthcare, retail and office, with properties primarily in the United States and also in Canada. Broadstone was founded in 2007 and is headquartered in Rochester, New York.

About W.P. Carey

W.P. Carey Inc. is a real estate investment trust that owns and manages commercial properties leased to businesses under long-term net leases. Under these arrangements, tenants typically pay property expenses such as taxes, insurance and maintenance in addition to rent. The company’s portfolio focuses primarily on industrial and warehouse properties, along with retail and self-storage facilities. Its properties serve tenants in the United States and Europe. In 2023, W.P. Carey separated its office properties into a new, publicly traded company as part of a shift toward its other property types.