Comparing Broadstone Net Lease (NYSE:BNL) & American Assets Trust (NYSE:AAT)

Broadstone Net Lease (NYSE:BNL) and American Assets Trust (NYSE:AAT) are both real estate companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, risk, analyst recommendations, earnings, valuation, profitability and dividends.

Earnings & Valuation

This table compares Broadstone Net Lease and American Assets Trust”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	$425.82 million	8.28	$155.48 million	$0.96	19.49
American Assets Trust	$445.27 million	3.86	$64.69 million	$0.89	31.71

Broadstone Net Lease has higher earnings, but lower revenue than American Assets Trust. Broadstone Net Lease is trading at a lower price-to-earnings ratio than American Assets Trust, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Broadstone Net Lease has a beta of 1.11, indicating that its stock price is 11% more volatile than the S&P 500. Comparatively, American Assets Trust has a beta of 1.3, indicating that its stock price is 30% more volatile than the S&P 500.

Dividends

Broadstone Net Lease pays an annual dividend of $1.16 per share and has a dividend yield of 6.2%. American Assets Trust pays an annual dividend of $1.34 per share and has a dividend yield of 4.7%. 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. American Assets Trust pays out 150.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Broadstone Net Lease is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares Broadstone Net Lease and American Assets 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%
American Assets Trust	12.00%	4.62%	1.78%

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Broadstone Net Lease and American Assets Trust, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Broadstone Net Lease	1	3	2	0	2.17
American Assets Trust	0	1	0	0	2.00

Broadstone Net Lease currently has a consensus target price of $18.25, indicating a potential downside of 2.46%. American Assets Trust has a consensus target price of $26.00, indicating a potential downside of 7.87%. Given Broadstone Net Lease’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Broadstone Net Lease is more favorable than American Assets Trust.

Institutional & Insider Ownership

89.1% of Broadstone Net Lease shares are held by institutional investors. Comparatively, 90.4% of American Assets Trust shares are held by institutional investors. 0.6% of Broadstone Net Lease shares are held by company insiders. Comparatively, 37.3% of American Assets Trust shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

Broadstone Net Lease beats American Assets Trust on 11 of the 16 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 American Assets Trust

American Assets Trust, Inc. is a full service, vertically integrated and self-administered real estate investment trust ("REIT"), headquartered in San Diego, California. The company has over 55 years of experience in acquiring, improving, developing and managing premier office, retail, and residential properties throughout the United States in some of the nation's most dynamic, high-barrier-to-entry markets primarily in Southern California, Northern California, Washington, Oregon, Texas and Hawaii. The company's office portfolio comprises approximately 4.1 million rentable square feet, and its retail portfolio comprises approximately 3.1 million rentable square feet. In addition, the company owns one mixed-use property (including approximately 94,000 rentable square feet of retail space and a 369-room all-suite hotel) and 2,110 multifamily units. In 2011, the company was formed to succeed to the real estate business of American Assets, Inc., a privately held corporation founded in 1967 and, as such, has significant experience, long-standing relationships and extensive knowledge of its core markets, submarkets and asset classes.