Will Broadstone Net (NYSE:BNL) shadow WP Carey price jump?

BNL
 Stock
  

USD 16.47  0.12  0.72%   

Today we may see the proof that WP Carey would recover much slower from the current slip as its shares went up 1.50% to Broadstone Net's 1.7027%. As many rational traders are trying to avoid real estate space, it makes sense to summarize Broadstone Net Lease a little further and understand how it stands against WP Carey and other similar entities. We are going to summarize some of the competitive aspects of both Broadstone and WP Carey.
Published over a month ago
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By analyzing existing basic indicators between Broadstone Net and WP Carey, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in WP Carey with a short position in Broadstone Net. Check out our pair correlation module for more information.

Let's begin by analyzing the assets.
One of the ways to look at asset utilization of Broadstone is to check how much profit was generated for every dollar of assets it reports. Broadstone Net Lease utilizes its assets nearly 2.87 percent, earning $0.0287 for each dollar of assets held by the firm. A positive asset utilization signifies that the company is slightly more effective with each dollar of assets it shows. Put another way, asset utilization of Broadstone Net shows how effective it operates for each dollar spent on its assets.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two entities, such as Broadstone or WP Carey is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

Understending Broadstone Net dividends

A dividend is the distribution of a portion of Broadstone Net earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Broadstone Net dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Broadstone one year expected dividend income is about $0.84 per share.
Investing in dividend-paying stocks, such as Broadstone Net Lease is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in Broadstone Net must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Broadstone Net. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.

How important is Broadstone Net's Liquidity

Broadstone Net financial leverage refers to using borrowed capital as a funding source to finance Broadstone Net Lease ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Broadstone Net financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Broadstone Net's total debt and its cash.

Correlation Between Broadstone and WP Carey

In general, Stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Broadstone Net together with similar or unrelated positions with a negative correlation. For example, you can also add WP Carey to your portfolio. If WP Carey is not perfectly correlated to Broadstone Net it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Broadstone Net, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.
Please check pair correlation details between BNL and WPC for more information.

Breaking it down a bit more

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Revenue Breakdown

Let me now analyze Broadstone Net revenue. Based on the latest financial disclosure, Broadstone Net Lease reported 394.02 M of revenue. This is 74.02% lower than that of the Real Estate sector and significantly higher than that of the REIT—Diversified industry. The revenue for all United States stocks is 95.82% higher than that of Broadstone Net. As for WP Carey we see revenue of 1.37 B, which is much higher than that of the REIT—Diversified

Broadstone394.02 Million
Sector0.0
WP Carey1.37 Billion
394 M
Broadstone
Sector
1.4 B
WP Carey

Broadstone may start a relapse in November

New treynor ratio is at -0.46. Broadstone Net Lease exhibits very low volatility with skewness of -0.97 and kurtosis of 2.14. However, we advise investors to further study Broadstone Net Lease technical indicators to ensure that all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Broadstone Net's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Broadstone Net's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Our Final Takeaway

While some companies in the reit—diversified industry are either recovering or due for a correction, Broadstone Net may not be performing as strong as the other in terms of long-term growth potentials. The inconsistency in the assessment between current Broadstone valuation and our trade advice on Broadstone Net is due to the recent market swings and your selection of investing horizon. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Broadstone Net.

Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of Broadstone Net Lease. Please refer to our Terms of Use for any information regarding our disclosure principles.

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