Urstadt Biddle Properties (NYSE: UBA) and Gladstone Commercial Corporation (NASDAQ:GOOD) are both small-cap finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, institutional ownership, risk, dividends, valuation and earnings.

Risk & Volatility

Urstadt Biddle Properties has a beta of 0.53, suggesting that its stock price is 47% less volatile than the S&P 500. Comparatively, Gladstone Commercial Corporation has a beta of 0.85, suggesting that its stock price is 15% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Urstadt Biddle Properties and Gladstone Commercial Corporation, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Urstadt Biddle Properties 0 0 1 0 3.00
Gladstone Commercial Corporation 0 3 2 0 2.40

Urstadt Biddle Properties presently has a consensus price target of $22.00, suggesting a potential upside of 2.04%. Gladstone Commercial Corporation has a consensus price target of $22.50, suggesting a potential upside of 3.59%. Given Gladstone Commercial Corporation’s higher probable upside, analysts plainly believe Gladstone Commercial Corporation is more favorable than Urstadt Biddle Properties.

Dividends

Urstadt Biddle Properties pays an annual dividend of $1.06 per share and has a dividend yield of 4.9%. Gladstone Commercial Corporation pays an annual dividend of $1.50 per share and has a dividend yield of 6.9%. 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 pays out -1,250.0% of its earnings in the form of a dividend. Urstadt Biddle Properties has increased its dividend for 17 consecutive years. Gladstone Commercial Corporation is clearly the better dividend stock, given its higher yield and lower payout ratio.

Valuation & Earnings

This table compares Urstadt Biddle Properties and Gladstone Commercial Corporation’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Urstadt Biddle Properties $122.07 million 6.66 $74.49 million $1.07 20.15
Gladstone Commercial Corporation $88.78 million 6.76 $72.08 million ($0.12) -181.00

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

59.3% of Urstadt Biddle Properties shares are owned by institutional investors. Comparatively, 49.1% of Gladstone Commercial Corporation shares are owned by institutional investors. 20.1% of Urstadt Biddle Properties shares are owned by company insiders. Comparatively, 2.2% of Gladstone Commercial Corporation shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Urstadt Biddle Properties and Gladstone Commercial Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Urstadt Biddle Properties 44.45% 13.62% 5.65%
Gladstone Commercial Corporation 8.15% 3.08% 0.86%

Summary

Urstadt Biddle Properties beats Gladstone Commercial Corporation on 11 of the 17 factors compared between the two stocks.

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.

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.

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