Head-To-Head Analysis: Gladstone Commercial (GOOD) & Landmark Infrastructure (LMRK)

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

Profitability

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

Net Margins Return on Equity Return on Assets
Gladstone Commercial 6.26% 2.36% 0.68%
Landmark Infrastructure 26.99% 10.41% 2.48%

Insider and Institutional Ownership

54.6% of Gladstone Commercial shares are held by institutional investors. Comparatively, 25.6% of Landmark Infrastructure shares are held by institutional investors. 2.0% of Gladstone Commercial shares are held by insiders. Comparatively, 0.7% of Landmark Infrastructure shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Dividends

Gladstone Commercial pays an annual dividend of $1.50 per share and has a dividend yield of 8.8%. Landmark Infrastructure pays an annual dividend of $1.47 per share and has a dividend yield of 8.5%. Gladstone Commercial pays out 98.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Landmark Infrastructure pays out 226.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Gladstone Commercial is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Ratings

This is a summary of recent ratings for Gladstone Commercial and Landmark Infrastructure, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Gladstone Commercial 0 3 2 0 2.40
Landmark Infrastructure 0 1 4 0 2.80

Gladstone Commercial currently has a consensus price target of $21.33, indicating a potential upside of 24.47%. Landmark Infrastructure has a consensus price target of $18.90, indicating a potential upside of 9.57%. Given Gladstone Commercial’s higher probable upside, analysts plainly believe Gladstone Commercial is more favorable than Landmark Infrastructure.

Valuation and Earnings

This table compares Gladstone Commercial and Landmark Infrastructure’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Gladstone Commercial $94.80 million 5.14 $5.93 million $1.52 11.28
Landmark Infrastructure $52.63 million 8.20 $19.25 million $0.65 26.54

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

Volatility and Risk

Gladstone Commercial has a beta of 0.78, suggesting that its stock price is 22% less volatile than the S&P 500. Comparatively, Landmark Infrastructure has a beta of 0.43, suggesting that its stock price is 57% less volatile than the S&P 500.

Gladstone Commercial 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.

Landmark Infrastructure Company Profile

Landmark Infrastructure Partners LP acquires, owns, and manages a portfolio of real property interests and infrastructure assets in the United States. The company leases its real property interests and infrastructure assets to companies operating in the wireless communication, outdoor advertising, and renewable power generation industries. It also owns various interests in receivables associated with related assets. Landmark Infrastructure Partners GP LLC serves as the general partner of the company. Landmark Infrastructure Partners LP was founded in 2014 and is based in El Segundo, California.

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