Gladstone Commercial Corporation (NASDAQ: GOOD) and Global Net Lease (NYSE:GNL) are both small-cap finance companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, institutional ownership, risk, valuation, dividends, earnings and analyst recommendations.
Earnings & Valuation
This table compares Gladstone Commercial Corporation and Global Net Lease’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Gladstone Commercial Corporation||N/A||N/A||N/A||($0.12)||-173.00|
|Global Net Lease||$233.85 million||6.15||$180.89 million||$0.61||35.03|
Global Net Lease has higher revenue and earnings than Gladstone Commercial Corporation. Gladstone Commercial Corporation is trading at a lower price-to-earnings ratio than Global Net Lease, indicating that it is currently the more affordable of the two stocks.
This table compares Gladstone Commercial Corporation and Global Net Lease’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Gladstone Commercial Corporation||8.15%||3.08%||0.86%|
|Global Net Lease||16.04%||2.91%||1.35%|
Gladstone Commercial Corporation pays an annual dividend of $1.50 per share and has a dividend yield of 7.2%. Global Net Lease pays an annual dividend of $2.13 per share and has a dividend yield of 10.0%. Gladstone Commercial Corporation pays out -1,250.0% of its earnings in the form of a dividend. Global Net Lease pays out 349.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Institutional & Insider Ownership
48.1% of Gladstone Commercial Corporation shares are owned by institutional investors. Comparatively, 40.7% of Global Net Lease shares are owned by institutional investors. 2.2% of Gladstone Commercial Corporation shares are owned by insiders. Comparatively, 0.2% of Global Net Lease shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Risk & Volatility
Gladstone Commercial Corporation has a beta of 0.85, indicating that its share price is 15% less volatile than the S&P 500. Comparatively, Global Net Lease has a beta of 0.69, indicating that its share price is 31% less volatile than the S&P 500.
This is a summary of current recommendations and price targets for Gladstone Commercial Corporation and Global Net Lease, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Gladstone Commercial Corporation||0||3||1||0||2.25|
|Global Net Lease||0||1||0||0||2.00|
Gladstone Commercial Corporation presently has a consensus price target of $22.50, indicating a potential upside of 8.38%. Global Net Lease has a consensus price target of $24.45, indicating a potential upside of 14.41%. Given Global Net Lease’s higher probable upside, analysts clearly believe Global Net Lease is more favorable than Gladstone Commercial Corporation.
Gladstone Commercial Corporation beats Global Net Lease on 8 of the 14 factors compared between the two stocks.
About Gladstone Commercial Corporation
Gladstone Commercial Corporation is a real estate investment trust. The Company focuses on acquiring, owning and managing primarily office and industrial properties. The Company also makes long-term industrial and commercial mortgage loans. As of February 15, 2017, the Company owned 95 properties totaling 10.9 million square feet in 24 states. As of December 31, 2016, the Company’s properties were located in various states of the United States, such as Ohio, Pennsylvania, North Carolina, Georgia, South Carolina, Michigan, Minnesota, Colorado and New Jersey. The Company’s properties have tenants from various industries, such as telecommunications; healthcare; automobile; electronics; information technology; chemicals, plastics and rubber; containers, packaging and glass; personal and non-durable consumer products; machinery; banking; childcare; buildings and real estate; beverage, food and tobacco; printing and publishing; education; home and office furnishings, and oil and gas.
About Global Net Lease
Global Net Lease, Inc. is a real estate investment trust. The Company’s business consists of owning, managing, operating, leasing, acquiring, investing in and disposing of real estate assets. It owns and invests in commercial properties principally in the United States, the United Kingdom and continental Europe that are then leased to companies. It was formed to primarily acquire a portfolio of commercial properties, with an emphasis on sale-leaseback transactions involving single tenant net-leased commercial properties. As of December 31, 2016, it owned 310 properties consisting of 22 million rentable square feet. As of December 31, 2016, its owned 310 properties, including 241 properties located in the United States and Puerto Rico, 43 properties located in the United Kingdom and 26 properties located across continental Europe. It may also originate or acquire first mortgage loans secured by real estate. Its business is conducted through Global Net Lease Operating Partnership, L.P.
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