Analyzing H&R Real Estate Investment Trust (OTCMKTS:HRUFF) and Broadstone Net Lease (NYSE:BNL)

Broadstone Net Lease (NYSE:BNL) and H&R Real Estate Investment Trust (OTCMKTS:HRUFF) are both real estate companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, earnings, profitability, risk, institutional ownership, analyst recommendations and dividends.

Dividends

Broadstone Net Lease pays an annual dividend of $1.16 per share and has a dividend yield of 6.4%. H&R Real Estate Investment Trust pays an annual dividend of $1.13 per share and has a dividend yield of 14.0%. Broadstone Net Lease pays out 120.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. H&R Real Estate Investment Trust pays out 76.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. H&R Real Estate Investment Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.

Institutional & Insider Ownership

89.1% of Broadstone Net Lease shares are held by institutional investors. Comparatively, 24.6% of H&R Real Estate Investment Trust shares are held by institutional investors. 0.6% of Broadstone Net Lease shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Broadstone Net Lease and H&R Real Estate Investment Trust”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Broadstone Net Lease	$425.82 million	8.01	$155.48 million	$0.96	18.85
H&R Real Estate Investment Trust	N/A	N/A	N/A	$1.48	5.42

Broadstone Net Lease has higher revenue and earnings than H&R Real Estate Investment Trust. H&R Real Estate Investment 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.

Profitability

This table compares Broadstone Net Lease and H&R Real Estate Investment Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Broadstone Net Lease	36.78%	4.86%	2.96%
H&R Real Estate Investment Trust	N/A	N/A	N/A

Analyst Ratings

This is a summary of current ratings for Broadstone Net Lease and H&R Real Estate Investment Trust, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Broadstone Net Lease	1	3	2	0	2.17
H&R Real Estate Investment Trust	0	0	0	0	N/A

Broadstone Net Lease currently has a consensus price target of $18.25, indicating a potential upside of 0.88%. Given Broadstone Net Lease’s higher probable upside, research analysts plainly believe Broadstone Net Lease is more favorable than H&R Real Estate Investment Trust.

Summary

Broadstone Net Lease beats H&R Real Estate Investment Trust on 9 of the 12 factors compared between the two stocks.

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.

About H&R Real Estate Investment Trust

H&R REIT is one of Canada's largest real estate investment trusts with total assets of approximately $10.8 billion as at December 31, 2023. H&R REIT has ownership interests in a North American portfolio comprised of high-quality residential, industrial, office and retail properties comprising over 26.9 million square feet. H&R's strategy is to create a simplified, growth-oriented business focused on residential and industrial properties in order to create sustainable long term value for unitholders. H&R plans to sell its office and retail properties as market conditions permit. H&R's target is to be a leading owner, operator and developer of residential and industrial properties, creating value through redevelopment and greenfield development in prime locations within Toronto, Montreal, Vancouver, and high growth U.S. sunbelt and gateway cities.