Global Net Lease (NYSE:GNL) vs. Universal Health Realty Income Trust (NYSE:UHT) Head to Head Survey

Universal Health Realty Income Trust (NYSE:UHT) and Global Net Lease (NYSE:GNL) are both small-cap finance companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, valuation, institutional ownership, risk, profitability, dividends and analyst recommendations.

Dividends

Universal Health Realty Income Trust pays an annual dividend of $2.94 per share and has a dividend yield of 8.0%. Global Net Lease pays an annual dividend of $1.10 per share and has a dividend yield of 15.3%. Universal Health Realty Income Trust pays out 224.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Global Net Lease pays out -117.0% of its earnings in the form of a dividend. Global Net Lease is clearly the better dividend stock, given its higher yield and lower payout ratio.

Insider & Institutional Ownership

64.7% of Universal Health Realty Income Trust shares are owned by institutional investors. Comparatively, 61.2% of Global Net Lease shares are owned by institutional investors. 2.2% of Universal Health Realty Income Trust shares are owned by company insiders. Comparatively, 0.3% of Global Net Lease shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Universal Health Realty Income Trust and Global Net Lease’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Universal Health Realty Income Trust	18.41%	9.44%	3.07%
Global Net Lease	-21.37%	-7.04%	-2.24%

Valuation & Earnings

This table compares Universal Health Realty Income Trust and Global Net Lease”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Universal Health Realty Income Trust	$98.69 million	5.13	$15.40 million	$1.31	27.92
Global Net Lease	$812.62 million	2.04	-$211.91 million	($0.94)	-7.66

Universal Health Realty Income Trust has higher earnings, but lower revenue than Global Net Lease. Global Net Lease is trading at a lower price-to-earnings ratio than Universal Health Realty Income Trust, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current ratings for Universal Health Realty Income Trust and Global Net Lease, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Universal Health Realty Income Trust	0	0	0	0	0.00
Global Net Lease	0	2	3	1	2.83

Global Net Lease has a consensus price target of $9.50, suggesting a potential upside of 31.94%. Given Global Net Lease’s stronger consensus rating and higher probable upside, analysts clearly believe Global Net Lease is more favorable than Universal Health Realty Income Trust.

Volatility and Risk

Universal Health Realty Income Trust has a beta of 0.84, meaning that its stock price is 16% less volatile than the S&P 500. Comparatively, Global Net Lease has a beta of 1.34, meaning that its stock price is 34% more volatile than the S&P 500.

Summary

Universal Health Realty Income Trust beats Global Net Lease on 9 of the 17 factors compared between the two stocks.

About Universal Health Realty Income Trust

Universal Health Realty Income Trust, a real estate investment trust, invests in healthcare and human-service related facilities including acute care hospitals, behavioral health care hospitals, specialty facilities, medical/office buildings, free-standing emergency departments and childcare centers. We have investments or commitments in seventy-six properties located in twenty-one states.

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.