Critical Comparison: Equinix (NASDAQ:EQIX) versus Global Net Lease (NASDAQ:GNL)

Equinix (NASDAQ:EQIX) and Global Net Lease (NYSE:GNL) are both finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, valuation, profitability, institutional ownership, analyst recommendations, risk and dividends.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Equinix and Global Net Lease, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Equinix 1 1 15 1 2.89
Global Net Lease 0 2 1 0 2.33

Equinix presently has a consensus target price of $533.71, indicating a potential downside of 3.28%. Global Net Lease has a consensus target price of $24.00, indicating a potential upside of 21.64%. Given Global Net Lease’s higher probable upside, analysts plainly believe Global Net Lease is more favorable than Equinix.

Valuation & Earnings

This table compares Equinix and Global Net Lease’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Equinix $5.07 billion 8.80 $365.36 million $20.69 26.67
Global Net Lease $282.21 million 5.86 $10.90 million $2.14 9.22

Equinix has higher revenue and earnings than Global Net Lease. Global Net Lease is trading at a lower price-to-earnings ratio than Equinix, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

97.8% of Equinix shares are owned by institutional investors. Comparatively, 63.5% of Global Net Lease shares are owned by institutional investors. 0.5% of Equinix shares are owned by company insiders. Comparatively, 0.2% of Global Net Lease shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Dividends

Equinix pays an annual dividend of $9.84 per share and has a dividend yield of 1.8%. Global Net Lease pays an annual dividend of $6.39 per share and has a dividend yield of 32.4%. Equinix pays out 47.6% of its earnings in the form of a dividend. Global Net Lease pays out 298.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Equinix has raised its dividend for 3 consecutive years.

Volatility and Risk

Equinix has a beta of 0.73, indicating that its stock price is 27% less volatile than the S&P 500. Comparatively, Global Net Lease has a beta of 0.71, indicating that its stock price is 29% less volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Equinix 9.29% 6.29% 2.31%
Global Net Lease 7.45% 1.48% 0.66%

Summary

Equinix beats Global Net Lease on 16 of the 18 factors compared between the two stocks.

Equinix Company Profile

Equinix, Inc. (Nasdaq: EQIX) connects the world's leading businesses to their customers, employees and partners inside the most-interconnected data centers. In 52 markets across five continents, Equinix is where companies come together to realize new opportunities and accelerate their business, IT and cloud strategies.

Global Net Lease Company Profile

Global Net Lease, Inc. (NYSE: GNL) is a publicly traded real estate investment trust listed on the NYSE 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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