When compared with common stock, preferred stock most likely has:

Preferred stock typically has a lower potential return compared to common stock due to its nature and structure. Preferred stockholders receive fixed dividends which are often set at a specific rate, providing more predictable income. This stability in dividend payments usually results in lower overall returns compared to common stock, where investors can benefit from both dividends and capital appreciation. Common stock has the potential for higher returns through price appreciation as the company grows and earns more profits, especially in bullish market conditions.

Additionally, preferred stock often has features that prioritize it over common stock concerning dividend payments and liquidation scenarios. However, these benefits come with limited upside potential, especially in growth scenarios where common equity can surge in value. Therefore, while preferred stock is typically less risky than common stock and more stable, this stability also translates to a lower potential return in favorable market conditions.