Critical Comparison: Stag Industrial (NYSE:STAG) versus Gladstone Commercial (NASDAQ:GOODO)

Gladstone Commercial (NASDAQ:GOODO) and Stag Industrial (NYSE:STAG) are both real estate companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, analyst recommendations, dividends, risk, profitability, institutional ownership and earnings.

Earnings and Valuation

This table compares Gladstone Commercial and Stag Industrial”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gladstone Commercial	$170.20 million	N/A	N/A	N/A	N/A
Stag Industrial	$845.18 million	8.48	$273.52 million	$1.30	28.61

Stag Industrial has higher revenue and earnings than Gladstone Commercial.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gladstone Commercial	0	0	0	0	0.00
Stag Industrial	1	6	3	0	2.20

Stag Industrial has a consensus price target of $50.50, suggesting a potential upside of 35.79%. Given Stag Industrial’s stronger consensus rating and higher possible upside, analysts plainly believe Stag Industrial is more favorable than Gladstone Commercial.

Institutional & Insider Ownership

88.7% of Stag Industrial shares are held by institutional investors. 1.1% of Stag Industrial shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Gladstone Commercial	N/A	N/A	N/A
Stag Industrial	28.04%	6.79%	3.43%

Dividends

Gladstone Commercial pays an annual dividend of $1.50 per share and has a dividend yield of 7.1%. Stag Industrial pays an annual dividend of $1.55 per share and has a dividend yield of 4.2%. Stag Industrial pays out 119.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Stag Industrial has raised its dividend for 7 consecutive years.

Summary

Stag Industrial beats Gladstone Commercial on 10 of the 12 factors compared between the two stocks.

About Gladstone Commercial

gladstone commercial corporation is a publicly traded reit (nasdaq: good) that invests in single tenant and anchored multi-tenant net leased industrial, office and, to a lesser extent, medical properties nationwide. we also invest alongside developers in build-to-suit transactions where a tenant requires a new building. we buy properties with strong tenants of all sizes and we believe our track record of underwriting the credit of middle market businesses is unmatched. we target primary and secondary growth markets that possess favorable economic growth trends, diversified industries, growing populations, and strong employment. our senior management team, under the guidance of david gladstone, has over 200 years of combined experience investing in real estate and middle market businesses. we have a track record of success, as exhibited by a history of strong distribution yields, consistent occupancy greater than 96.0%, and 10+ years of paying continuous monthly cash distributions. we a

About Stag Industrial

STAG Industrial, Inc. is a real estate investment company, which engages in acquiring, owning, and managing single-tenant, industrial real estate assets. It offers industrial real estate operating platform to real estate ownership. The company was founded by Benjamin S. Butcher on July 21, 2010 and is headquartered in Boston, MA.