Net Lease Office Properties (NLOP) vs Orion Office REIT Inc. (ONL)

Net Lease Office Properties and Orion Office REIT Inc. are both Reit Office companies. Net Lease Office Properties and Orion Office REIT Inc. are of similar size ($134.1M and $133.6M). Orion Office REIT Inc. has negative trailing earnings, so its P/E is not meaningful; Net Lease Office Properties trades at 7.5×. Orion Office REIT Inc. grew revenue faster over the last twelve months: −6.34% against −55.1%. Net Lease Office Properties has the higher net margin (34.8% vs −19.9%) and the lower return on invested capital (−0.99% vs −0.61%). Both pay a dividend; Net Lease Office Properties yields more (44.3% vs 3.00%). Across the 20 metrics below, Net Lease Office Properties leads on 14 and Orion Office REIT Inc. on 6.

Valuation

Metric NLOP ONL Reit Office median
P/E 7.53 n/m 28.35
P/S 2.64 1.08 2.77
P/B 0.82 0.24 0.82
Price to free cash flow 0.45 2.10 13.95
EV/EBITDA 9.63 19.19 12.41
EV/Sales 2.47 6.21 6.90
Earnings yield 13.27% (19.10%) (2.06%)
Free cash flow yield 221.94% 47.58% 6.73%

Profitability

Metric NLOP ONL Reit Office median
Gross margin 88.14% 59.82% 60.87%
Operating margin (4.13%) (7.33%) 17.78%
Net margin 34.79% (19.89%) (2.87%)
Free cash flow margin 585.16% 19.04% 14.89%
Return on equity 6.02% (4.35%) (1.07%)
Return on assets 5.15% (2.38%) (0.34%)
Return on invested capital (0.99%) (0.61%) 1.33%

Growth

Metric NLOP ONL Reit Office median
Revenue growth (TTM) (55.11%) (6.34%) 2.67%
EPS growth (last fiscal year) (58.74%) (34.78%) 8.85%
Revenue growth, 5-year CAGR — 22.52% 3.91%
Net income growth, 5-year CAGR — 0.00% 0.00%

Health

Metric NLOP ONL Reit Office median
Debt to equity 0.00 0.69 1.24
Current ratio 2.40 0.00 1.98
Net debt to EBITDA 1.63 (11.84) 6.86

Dividend

Metric NLOP ONL Reit Office median
Dividend yield 44.28% 3.00% 4.16%
Payout ratio 3.34 — 3.34

Size

Metric NLOP ONL Reit Office median
Market cap 133.63m 134.05m 1.22b

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