W. P. Carey (NYSE:WPC) versus Franklin BSP Realty Trust (NYSE:FBRT) Head to Head Analysis

W. P. Carey (NYSE:WPC) and Franklin BSP Realty Trust (NYSE:FBRT) are both finance companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, dividends, valuation, risk, institutional ownership, analyst recommendations and earnings.

Dividends

W. P. Carey pays an annual dividend of $3.52 per share and has a dividend yield of 6.3%. Franklin BSP Realty Trust pays an annual dividend of $1.42 per share and has a dividend yield of 11.2%. W. P. Carey pays out 138.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Franklin BSP Realty Trust pays out 173.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Insider & Institutional Ownership

73.7% of W. P. Carey shares are held by institutional investors. Comparatively, 59.9% of Franklin BSP Realty Trust shares are held by institutional investors. 1.2% of W. P. Carey shares are held by company insiders. Comparatively, 0.7% of Franklin BSP Realty Trust shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Risk and Volatility

W. P. Carey has a beta of 0.97, meaning that its share price is 3% less volatile than the S&P 500. Comparatively, Franklin BSP Realty Trust has a beta of 1.39, meaning that its share price is 39% more volatile than the S&P 500.

Profitability

This table compares W. P. Carey and Franklin BSP Realty Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
W. P. Carey	35.12%	6.45%	3.14%
Franklin BSP Realty Trust	45.58%	8.92%	1.89%

Earnings and Valuation

This table compares W. P. Carey and Franklin BSP Realty Trust”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
W. P. Carey	$1.74 billion	7.01	$708.33 million	$2.54	21.97
Franklin BSP Realty Trust	$263.95 million	3.92	$145.21 million	$0.82	15.43

W. P. Carey has higher revenue and earnings than Franklin BSP Realty Trust. Franklin BSP Realty Trust is trading at a lower price-to-earnings ratio than W. P. Carey, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current ratings and price targets for W. P. Carey and Franklin BSP Realty Trust, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
W. P. Carey	1	6	2	0	2.11
Franklin BSP Realty Trust	0	0	4	2	3.33

W. P. Carey presently has a consensus price target of $62.43, suggesting a potential upside of 11.86%. Franklin BSP Realty Trust has a consensus price target of $15.50, suggesting a potential upside of 22.51%. Given Franklin BSP Realty Trust’s stronger consensus rating and higher probable upside, analysts plainly believe Franklin BSP Realty Trust is more favorable than W. P. Carey.

Summary

W. P. Carey beats Franklin BSP Realty Trust on 9 of the 17 factors compared between the two stocks.

About W. P. Carey

W. P. Carey ranks among the largest net lease REITs with a well-diversified portfolio of high-quality, operationally critical commercial real estate, which includes 1,424 net lease properties covering approximately 173 million square feet and a portfolio of 89 self-storage operating properties as of December 31, 2023. With offices in New York, London, Amsterdam and Dallas, the company remains focused on investing primarily in single-tenant, industrial, warehouse and retail properties located in the U.S. and Northern and Western Europe, under long-term net leases with built-in rent escalations.

About Franklin BSP Realty Trust

Benefit Street Partners operates as a self-managed real estate investment trust (REIT). BSP earns income from investing in a leveraged portfolio of residential mortgage pass-through securities consisting almost exclusively of adjustable-rate mortgage (ARM) securities issued and guaranteed by government-sponsored enterprises, either Federal National Mortgage Association (Fannie Mae) or Federal Home Loan Mortgage Corporation (Freddie Mac) (together, the government-sponsored enterprises (GSEs)), or by an agency of the federal government, Government National Mortgage Association (Ginnie Mae). BSP’s investment strategy focuses on managing a portfolio of residential mortgage investments consisting almost exclusively of ARM Agency Securities. As of December 31, 2012, the Company’s securities consisted of Agency Securities classified as available-for-sale and Residential mortgage securities classified as held-to-maturity.