Gladstone Land Corporation (NASDAQ: LAND) and Jernigan Capital (NYSE:JCAP) are both small-cap finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, risk, institutional ownership, profitability, earnings, dividends and valuation.

Profitability

This table compares Gladstone Land Corporation and Jernigan Capital’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Gladstone Land Corporation 2.58% 0.57% 0.15%
Jernigan Capital 185.96% 9.37% 7.91%

Volatility and Risk

Gladstone Land Corporation has a beta of 1.03, suggesting that its stock price is 3% more volatile than the S&P 500. Comparatively, Jernigan Capital has a beta of 0.84, suggesting that its stock price is 16% less volatile than the S&P 500.

Institutional & Insider Ownership

24.2% of Gladstone Land Corporation shares are held by institutional investors. Comparatively, 40.9% of Jernigan Capital shares are held by institutional investors. 21.9% of Gladstone Land Corporation shares are held by company insiders. Comparatively, 3.2% of Jernigan Capital 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.

Analyst Ratings

This is a breakdown of recent recommendations for Gladstone Land Corporation and Jernigan Capital, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Gladstone Land Corporation 0 1 2 0 2.67
Jernigan Capital 0 1 2 0 2.67

Gladstone Land Corporation presently has a consensus target price of $14.25, suggesting a potential upside of 5.17%. Jernigan Capital has a consensus target price of $25.33, suggesting a potential upside of 23.16%. Given Jernigan Capital’s higher probable upside, analysts plainly believe Jernigan Capital is more favorable than Gladstone Land Corporation.

Earnings and Valuation

This table compares Gladstone Land Corporation and Jernigan Capital’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Gladstone Land Corporation $19.38 million 8.40 $13.92 million $0.05 271.05
Jernigan Capital $7.80 million 37.55 $28.62 million $2.01 10.23

Jernigan Capital has higher revenue, but lower earnings than Gladstone Land Corporation. Jernigan Capital is trading at a lower price-to-earnings ratio than Gladstone Land Corporation, indicating that it is currently the more affordable of the two stocks.

Dividends

Gladstone Land Corporation pays an annual dividend of $0.53 per share and has a dividend yield of 3.9%. Jernigan Capital pays an annual dividend of $1.40 per share and has a dividend yield of 6.8%. Gladstone Land Corporation pays out 1,060.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Jernigan Capital pays out 69.7% of its earnings in the form of a dividend. Jernigan Capital is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Jernigan Capital beats Gladstone Land Corporation on 10 of the 14 factors compared between the two stocks.

About Gladstone Land Corporation

Gladstone Land Corporation is an agricultural real estate investment trust (REIT). The Company is engaged in the business of owning and leasing farmland. The Company also owns various farm-related facilities, such as cooling facilities, buildings utilized for the storage and assembly of boxes for shipping produce (box barns), packinghouses, processing facilities and various storage facilities. The Company is engaged in leasing its farms and farm-related facilities to independent or corporate farming operations. As of July 17, 2017, the Company owned 69 farms, including 58,777 total acres across seven states in the United States (Arizona, California, Colorado, Florida, Michigan, Nebraska and Oregon). As of December 31, 2016, the Company’s farms and facilities were leased to 40 different, unrelated tenants that are either independent or corporate farming operations. The Company focuses to own primarily single-tenant, agricultural real property.

About Jernigan Capital

Jernigan Capital, Inc. is a commercial real estate finance company. The Company provides capital to private developers, owners and operators of self-storage facilities. It intends to generate long-term returns on development property investments through a fixed rate of interest on its invested capital together with an interest in the positive cash flows of the self-storage development from operations, sales and/or refinancings. It generates cash flows from construction loans and operating property loans in the form of a fixed interest rate and origination fees. It originates various loans, such as bridge loans and credit lines. It has development property investments in Orlando, Atlanta, Tampa, Chicago and Miami. Its operating property loans are located in New Orleans, Newark, Nashville, Sacramento and Chicago. The Company conducts its investment activities through Jernigan Capital Operating Company, LLC. The Company is externally managed and advised by JCap Advisors, LLC.

Receive News & Ratings for Gladstone Land Corporation Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Gladstone Land Corporation and related companies with MarketBeat.com's FREE daily email newsletter.