Head to Head Analysis: Gladstone Commercial (NASDAQ:GOOD) vs. HG (OTCMKTS:STLY)

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

Insider and Institutional Ownership

45.5% of Gladstone Commercial shares are owned by institutional investors. Comparatively, 1.7% of HG shares are owned by institutional investors. 1.4% of Gladstone Commercial shares are owned by insiders. Comparatively, 75.0% of HG shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Gladstone Commercial and HG, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gladstone Commercial	0	3	0	0	2.00
HG	0	0	0	0	0.00

Gladstone Commercial currently has a consensus target price of $12.00, indicating a potential upside of 2.39%. Given Gladstone Commercial’s stronger consensus rating and higher possible upside, equities analysts clearly believe Gladstone Commercial is more favorable than HG.

Earnings and Valuation

This table compares Gladstone Commercial and HG”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gladstone Commercial	$149.39 million	3.80	$24.00 million	$0.18	65.11
HG	$11.51 million	2.22	-$240,000.00	$0.43	11.63

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

Volatility & Risk

Gladstone Commercial has a beta of 1.11, suggesting that its share price is 11% more volatile than the S&P 500. Comparatively, HG has a beta of 0.48, suggesting that its share price is 52% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Gladstone Commercial	13.59%	11.77%	1.78%
HG	12.44%	4.58%	3.41%

Summary

Gladstone Commercial beats HG on 10 of the 13 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 HG

HG Holdings, Inc. engages in the title insurance and real estate businesses in the United States. It operates through four segments: Title Insurance Services, Reinsurance, Management Services, and Real Estate. The company provides title insurance, closing and/or escrow, and similar or related services in connection with residential and commercial real estate transactions. It also owns and operates a portfolio of single-tenant properties leased for the occupancy by U.S. government tenant agencies and sub-agencies, such as the Federal Bureau of Investigation, the Department of Veterans affairs, the Drug Enforcement Administration, Immigration & Customs Enforcement, the Social Security Administration, and the Department of Transportation. In addition, the company provides excess-of-loss reinsurance coverage related to catastrophic weather risk in Texas; and management advisory services, such as formation, operational, and restructuring services. The company was formerly known as Stanley Furniture Company, Inc. and changed its name to HG Holdings, Inc. in March 2018. HG Holdings, Inc. was incorporated in 1984 and is headquartered in Charlotte, North Carolina.