Financial Contrast: Gadsden Properties (OTCMKTS:GADS) versus Centerspace (NYSE:CSR)

Centerspace (NYSE:CSR) and Gadsden Properties (OTCMKTS:GADS) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, earnings, dividends, valuation, profitability and institutional ownership.

Profitability

This table compares Centerspace and Gadsden Properties’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Centerspace	-9.13%	-2.81%	-1.27%
Gadsden Properties	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Centerspace and Gadsden Properties, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Centerspace	0	7	3	0	2.30
Gadsden Properties	0	0	0	0	0.00

Centerspace currently has a consensus price target of $69.67, suggesting a potential upside of 4.35%. Given Centerspace’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Centerspace is more favorable than Gadsden Properties.

Risk and Volatility

Centerspace has a beta of 0.75, meaning that its share price is 25% less volatile than the S&P 500. Comparatively, Gadsden Properties has a beta of -8.36, meaning that its share price is 936% less volatile than the S&P 500.

Institutional & Insider Ownership

79.0% of Centerspace shares are held by institutional investors. 0.4% of Centerspace shares are held by insiders. Comparatively, 5.0% of Gadsden Properties shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Centerspace and Gadsden Properties”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Centerspace	$273.45 million	4.08	-$10.69 million	$1.79	37.30
Gadsden Properties	N/A	N/A	N/A	N/A	N/A

Gadsden Properties has lower revenue, but higher earnings than Centerspace.

Summary

Centerspace beats Gadsden Properties on 6 of the 10 factors compared between the two stocks.

About Centerspace

Centerspace is an owner and operator of apartment communities committed to providing great homes by focusing on integrity and serving others. Founded in 1970, as of September 30, 2023, Centerspace owned interests in 71 apartment communities consisting of 12,785 apartment homes located in Colorado, Minnesota, Montana, Nebraska, North Dakota, and South Dakota. Centerspace was named a Top Workplace for the fourth consecutive year in 2023 by the Minneapolis Star Tribune.

About Gadsden Properties

Gadsden Properties, Inc. is a Nevada corporation that was formed on December 28, 2010. Gadsden concentrates primarily on investments in high quality income-producing assets, residential developments and other opportunistic commercial properties in secondary and tertiary markets across the United States. The Company derives value from smaller, flexible retail investments that range from $5 million to $50 million and off-market mixed-use properties ranging from $50 million to $250 million. As a result of this chosen strategy, we believe that Gadsden is developing a unique competitive advantage that generally allows the Company to invest in markets and assets that are often overlooked by larger institutional investors, such as publicly-traded REITs and other large institutional investors. As part of its strategy, Gadsden attracts specific sellers that prefer the tax deferral advantages offered through issuing operating partnership units in exchange for their properties. These real estate assets are typically operated by independent owners that are seeking to monetize their real estate holdings, and who are typically not well capitalized or well-seasoned real estate operators. These transactions create a variety of outcomes for Gadsden and the sellers typically resulting in lease-up and value-added opportunities that may not be otherwise achieved.