Gladstone Commercial Corporation (NASDAQ: GOOD) and Urstadt Biddle Properties (NYSE:UBA) are both finance companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, earnings, analyst recommendations, risk, profitability, valuation and institutional ownership.
Gladstone Commercial Corporation pays an annual dividend of $1.50 per share and has a dividend yield of 6.9%. Urstadt Biddle Properties pays an annual dividend of $1.06 per share and has a dividend yield of 4.9%. Gladstone Commercial Corporation pays out -1,250.0% of its earnings in the form of a dividend. Urstadt Biddle Properties pays out 99.1% 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 Corporation has increased its dividend for 17 consecutive years. Gladstone Commercial Corporation is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This table compares Gladstone Commercial Corporation and Urstadt Biddle Properties’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Gladstone Commercial Corporation||8.15%||3.08%||0.86%|
|Urstadt Biddle Properties||44.45%||13.62%||5.65%|
Risk & Volatility
Gladstone Commercial Corporation has a beta of 0.85, meaning that its share price is 15% less volatile than the S&P 500. Comparatively, Urstadt Biddle Properties has a beta of 0.53, meaning that its share price is 47% less volatile than the S&P 500.
This is a summary of recent recommendations and price targets for Gladstone Commercial Corporation and Urstadt Biddle Properties, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Gladstone Commercial Corporation||0||3||2||0||2.40|
|Urstadt Biddle Properties||0||2||1||0||2.33|
Gladstone Commercial Corporation presently has a consensus target price of $22.50, suggesting a potential upside of 3.21%. Urstadt Biddle Properties has a consensus target price of $22.33, suggesting a potential upside of 3.78%. Given Urstadt Biddle Properties’ higher possible upside, analysts clearly believe Urstadt Biddle Properties is more favorable than Gladstone Commercial Corporation.
Valuation & Earnings
This table compares Gladstone Commercial Corporation and Urstadt Biddle Properties’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Gladstone Commercial Corporation||N/A||N/A||N/A||($0.12)||-181.67|
|Urstadt Biddle Properties||$122.07 million||6.65||$74.49 million||$1.07||20.11|
Urstadt Biddle Properties has higher revenue and earnings than Gladstone Commercial Corporation. Gladstone Commercial Corporation is trading at a lower price-to-earnings ratio than Urstadt Biddle Properties, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
49.1% of Gladstone Commercial Corporation shares are held by institutional investors. Comparatively, 59.3% of Urstadt Biddle Properties shares are held by institutional investors. 2.2% of Gladstone Commercial Corporation shares are held by company insiders. Comparatively, 20.1% of Urstadt Biddle Properties shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Urstadt Biddle Properties beats Gladstone Commercial Corporation on 8 of the 14 factors compared between the two stocks.
Gladstone Commercial Corporation Company Profile
Gladstone Commercial Corporation is a real estate investment trust. The Company focuses on acquiring, owning and managing primarily office and industrial properties. The Company also makes long-term industrial and commercial mortgage loans. As of February 15, 2017, the Company owned 95 properties totaling 10.9 million square feet in 24 states. As of December 31, 2016, the Company’s properties were located in various states of the United States, such as Ohio, Pennsylvania, North Carolina, Georgia, South Carolina, Michigan, Minnesota, Colorado and New Jersey. The Company’s properties have tenants from various industries, such as telecommunications; healthcare; automobile; electronics; information technology; chemicals, plastics and rubber; containers, packaging and glass; personal and non-durable consumer products; machinery; banking; childcare; buildings and real estate; beverage, food and tobacco; printing and publishing; education; home and office furnishings, and oil and gas.
Urstadt Biddle Properties Company Profile
Urstadt Biddle Properties Inc. is a real estate investment trust, which is engaged in the acquisition, ownership and management of commercial real estate. The Company owns Ridgeway Shopping Center (Ridgeway) property, which is located in Stamford, Connecticut. Its segments include Ridgeway and All Other Operating Segments. Its primary business is the ownership of real estate investments with primary emphasis on properties in the metropolitan New York tri-state area outside of the City of New York. As of October 31, 2016, the Company’s properties consisted principally of neighborhood and community shopping centers and seven office buildings. As of March 30, 2017, the Company owned or had equity interests in 80 properties, including neighborhood and community shopping centers, office buildings, single tenant retail or restaurant properties and office/retail mixed-use properties located in four states throughout the United States.
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