Broadstone Net Lease (NYSE:BNL) versus Centerspace (NYSE:CSR) Critical Survey

Centerspace (NYSE:CSR) and Broadstone Net Lease (NYSE:BNL) are both finance companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, risk, profitability, earnings, dividends, analyst recommendations and valuation.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Centerspace	-4.34%	-1.34%	-0.60%
Broadstone Net Lease	37.62%	5.10%	3.08%

Dividends

Centerspace pays an annual dividend of $3.08 per share and has a dividend yield of 4.7%. Broadstone Net Lease pays an annual dividend of $1.16 per share and has a dividend yield of 6.9%. Centerspace pays out -242.5% of its earnings in the form of a dividend. Broadstone Net Lease pays out 133.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Valuation & Earnings

This table compares Centerspace and Broadstone 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
Centerspace	$260.98 million	4.23	$41.97 million	($1.27)	-51.93
Broadstone Net Lease	$431.80 million	7.37	$155.48 million	$0.87	19.38

Broadstone Net Lease has higher revenue and earnings than Centerspace. Centerspace 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.

Risk & Volatility

Centerspace has a beta of 0.9, meaning that its share price is 10% less volatile than the S&P 500. Comparatively, Broadstone Net Lease has a beta of 1.11, meaning that its share price is 11% more volatile than the S&P 500.

Insider & Institutional Ownership

79.0% of Centerspace shares are owned by institutional investors. Comparatively, 89.1% of Broadstone Net Lease shares are owned by institutional investors. 0.9% of Centerspace shares are owned by company insiders. Comparatively, 0.6% of Broadstone Net Lease shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings for Centerspace and Broadstone Net Lease, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Centerspace	0	4	3	0	2.43
Broadstone Net Lease	1	4	2	1	2.38

Centerspace currently has a consensus price target of $74.43, suggesting a potential upside of 12.86%. Broadstone Net Lease has a consensus price target of $18.60, suggesting a potential upside of 10.32%. Given Centerspace’s stronger consensus rating and higher possible upside, research analysts clearly believe Centerspace is more favorable than Broadstone Net Lease.

Summary

Broadstone Net Lease beats Centerspace on 12 of the 17 factors compared between the two stocks.

About Centerspace

Centerspace is an owner and operator of apartment communities committed to providing great homes by focusing on integrity and serving others. Founded in 1970, as of September 30, 2023, Centerspace owned interests in 71 apartment communities consisting of 12,785 apartment homes located in Colorado, Minnesota, Montana, Nebraska, North Dakota, and South Dakota. Centerspace was named a Top Workplace for the fourth consecutive year in 2023 by the Minneapolis Star Tribune.

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.