Cousins Properties (NYSE:CUZ) and Gladstone Commercial (NASDAQ:GOOD) Financial Contrast

Cousins Properties (NYSE:CUZ) and Gladstone Commercial (NASDAQ:GOOD) are both finance companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, profitability, institutional ownership, earnings, dividends, risk and analyst recommendations.

Volatility and Risk

Cousins Properties has a beta of 1.36, suggesting that its share price is 36% more volatile than the S&P 500. Comparatively, Gladstone Commercial has a beta of 1.11, suggesting that its share price is 11% more volatile than the S&P 500.

Profitability

This table compares Cousins Properties and Gladstone Commercial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cousins Properties	6.51%	1.27%	0.70%
Gladstone Commercial	18.67%	16.37%	2.52%

Analyst Recommendations

This is a summary of current ratings and target prices for Cousins Properties and Gladstone Commercial, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cousins Properties	0	6	6	0	2.50
Gladstone Commercial	1	1	0	0	1.50

Cousins Properties presently has a consensus target price of $32.00, suggesting a potential upside of 24.85%. Gladstone Commercial has a consensus target price of $13.00, suggesting a potential upside of 16.96%. Given Cousins Properties’ stronger consensus rating and higher probable upside, analysts clearly believe Cousins Properties is more favorable than Gladstone Commercial.

Valuation and Earnings

This table compares Cousins Properties and Gladstone Commercial”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cousins Properties	$964.11 million	4.47	$45.96 million	$0.35	73.23
Gladstone Commercial	$155.25 million	3.47	$24.00 million	$0.18	61.75

Cousins Properties has higher revenue and earnings than Gladstone Commercial. Gladstone Commercial is trading at a lower price-to-earnings ratio than Cousins Properties, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

94.4% of Cousins Properties shares are owned by institutional investors. Comparatively, 45.5% of Gladstone Commercial shares are owned by institutional investors. 1.4% of Cousins Properties shares are owned by insiders. Comparatively, 1.4% of Gladstone Commercial shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Dividends

Cousins Properties pays an annual dividend of $1.28 per share and has a dividend yield of 5.0%. Gladstone Commercial pays an annual dividend of $1.20 per share and has a dividend yield of 10.8%. Cousins Properties pays out 365.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Gladstone Commercial pays out 666.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Summary

Cousins Properties beats Gladstone Commercial on 11 of the 15 factors compared between the two stocks.

About Cousins Properties

Cousins Properties Incorporated ("Cousins") is a fully integrated, self-administered, and self-managed real estate investment trust (REIT). The Company, based in Atlanta and acting through its operating partnership, Cousins Properties LP, primarily invests in Class A office buildings located in high-growth Sun Belt markets. Founded in 1958, Cousins creates shareholder value through its extensive expertise in the development, acquisition, leasing, and management of high-quality real estate assets. The Company has a comprehensive strategy in place based on a simple platform, trophy assets, and opportunistic investments.

About Gladstone Commercial

Gladstone Commercial Corporation is a real estate investment trust focused on acquiring, owning, and operating net leased industrial and office properties across the United States. Including payments through January 2024, Gladstone Commercial has paid 229 consecutive monthly cash distributions on its common stock. Prior to paying distributions on a monthly basis, Gladstone Commercial paid five consecutive quarterly cash distributions. Gladstone Commercial has never skipped or deferred a distribution since its inception in 2003.