Financial Analysis: Gladstone Commercial (NASDAQ:GOOD) and Four Corners Property Trust (NYSE:FCPT)

Gladstone Commercial (NASDAQ:GOOD) and Four Corners Property Trust (NYSE:FCPT) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, analyst recommendations, institutional ownership, profitability, risk, earnings and dividends.

Risk and Volatility

Gladstone Commercial has a beta of 1.08, indicating that its stock price is 8% more volatile than the S&P 500. Comparatively, Four Corners Property Trust has a beta of 0.8, indicating that its stock price is 20% less volatile than the S&P 500.

Profitability

This table compares Gladstone Commercial and Four Corners Property Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Gladstone Commercial	12.74%	12.11%	1.71%
Four Corners Property Trust	38.74%	7.38%	4.06%

Insider & Institutional Ownership

45.5% of Gladstone Commercial shares are owned by institutional investors. Comparatively, 98.7% of Four Corners Property Trust shares are owned by institutional investors. 1.3% of Gladstone Commercial shares are owned by insiders. Comparatively, 1.2% of Four Corners Property Trust shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and price targets for Gladstone Commercial and Four Corners Property Trust, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gladstone Commercial	0	3	0	0	2.00
Four Corners Property Trust	0	5	4	0	2.44

Gladstone Commercial currently has a consensus target price of $12.75, suggesting a potential downside of 0.08%. Four Corners Property Trust has a consensus target price of $28.13, suggesting a potential upside of 11.62%. Given Four Corners Property Trust’s stronger consensus rating and higher possible upside, analysts plainly believe Four Corners Property Trust is more favorable than Gladstone Commercial.

Dividends

Gladstone Commercial pays an annual dividend of $1.20 per share and has a dividend yield of 9.4%. Four Corners Property Trust pays an annual dividend of $1.47 per share and has a dividend yield of 5.8%. 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. Four Corners Property Trust pays out 131.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Four Corners Property Trust has raised its dividend for 5 consecutive years.

Valuation & Earnings

This table compares Gladstone Commercial and Four Corners Property Trust”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gladstone Commercial	$161.34 million	3.83	$19.29 million	$0.18	70.89
Four Corners Property Trust	$294.13 million	9.40	$112.36 million	$1.12	22.50

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

Summary

Four Corners Property Trust beats Gladstone Commercial on 12 of the 17 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 Four Corners Property Trust

Four Corners Property Trust, Inc. engages in the owning, acquisition, and leasing of properties for use in the restaurant and food-service related industries. It operates through the Real Estate Operations and Restaurant Operations segments. The Real Estate Operations segment consists of rental revenues generated by leasing restaurant properties. The Restaurant Operations segment includes the Kerrow Restaurant operating business. The company was founded on July 2, 2015 and is headquartered in Mill Valley, CA.