Gladstone Commercial (NASDAQ:GOODN) versus Stag Industrial (NYSE:STAG) Critical Survey

Stag Industrial (NYSE:STAG) and Gladstone Commercial (NASDAQ:GOODN) are both real estate companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, valuation, analyst recommendations, profitability, earnings, dividends and risk.

Insider & Institutional Ownership

88.7% of Stag Industrial shares are owned by institutional investors. 1.1% of Stag Industrial shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings for Stag Industrial and Gladstone Commercial, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Stag Industrial	1	6	3	0	2.20
Gladstone Commercial	0	0	0	0	0.00

Stag Industrial currently has a consensus price target of $50.50, suggesting a potential upside of 37.68%. Given Stag Industrial’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Stag Industrial is more favorable than Gladstone Commercial.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Stag Industrial	28.04%	6.79%	3.43%
Gladstone Commercial	N/A	N/A	N/A

Dividends

Stag Industrial pays an annual dividend of $1.55 per share and has a dividend yield of 4.2%. Gladstone Commercial pays an annual dividend of $1.66 per share and has a dividend yield of 7.1%. Stag Industrial pays out 119.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Stag Industrial has raised its dividend for 7 consecutive years.

Valuation and Earnings

This table compares Stag Industrial and Gladstone Commercial”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Stag Industrial	$845.18 million	8.37	$273.52 million	$1.30	28.22
Gladstone Commercial	$170.20 million	N/A	N/A	N/A	N/A

Stag Industrial has higher revenue and earnings than Gladstone Commercial.

Summary

Stag Industrial beats Gladstone Commercial on 10 of the 12 factors compared between the two stocks.

About Stag Industrial

STAG Industrial, Inc. is a real estate investment company, which engages in acquiring, owning, and managing single-tenant, industrial real estate assets. It offers industrial real estate operating platform to real estate ownership. The company was founded by Benjamin S. Butcher on July 21, 2010 and is headquartered in Boston, MA.

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.