Financial Contrast: Stag Industrial (NYSE:STAG) & Gladstone Commercial (NASDAQ:GOODN)

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

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gladstone Commercial	$170.20 million	N/A	N/A	N/A	N/A
Stag Industrial	$845.18 million	8.35	$273.52 million	$1.30	28.15

Stag Industrial has higher revenue and earnings than Gladstone Commercial.

Dividends

Gladstone Commercial pays an annual dividend of $1.66 per share and has a dividend yield of 7.1%. Stag Industrial pays an annual dividend of $1.55 per share and has a dividend yield of 4.2%. 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 increased its dividend for 7 consecutive years.

Insider & Institutional Ownership

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

Profitability

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

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

Analyst Ratings

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

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

Stag Industrial has a consensus target price of $50.50, indicating a potential upside of 38.02%. Given Stag Industrial’s stronger consensus rating and higher probable upside, analysts clearly believe Stag Industrial is more favorable than Gladstone Commercial.

Summary

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

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.

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.