Gladstone Land (NASDAQ:LAND – Get Rating) and Urstadt Biddle Properties (NYSE:UBA – Get Rating) are both small-cap finance companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, valuation, earnings, profitability, analyst recommendations, dividends and institutional ownership.
Dividends
Gladstone Land pays an annual dividend of $0.55 per share and has a dividend yield of 3.3%. Urstadt Biddle Properties pays an annual dividend of $1.00 per share and has a dividend yield of 5.8%. Gladstone Land pays out -127.9% of its earnings in the form of a dividend. Urstadt Biddle Properties pays out 140.8% 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 Land has raised its dividend for 9 consecutive years and Urstadt Biddle Properties has raised its dividend for 2 consecutive years.
Insider and Institutional Ownership
45.3% of Gladstone Land shares are held by institutional investors. Comparatively, 52.3% of Urstadt Biddle Properties shares are held by institutional investors. 7.2% of Gladstone Land shares are held by company insiders. Comparatively, 9.4% of Urstadt Biddle Properties 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.
Earnings & Valuation
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Gladstone Land | $89.24 million | 6.57 | $4.71 million | ($0.43) | -38.19 |
Urstadt Biddle Properties | $143.10 million | 4.77 | $39.70 million | $0.71 | 24.44 |
Urstadt Biddle Properties has higher revenue and earnings than Gladstone Land. Gladstone Land 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.
Volatility and Risk
Gladstone Land has a beta of 1.02, indicating that its stock price is 2% more volatile than the S&P 500. Comparatively, Urstadt Biddle Properties has a beta of 1.11, indicating that its stock price is 11% more volatile than the S&P 500.
Profitability
This table compares Gladstone Land and Urstadt Biddle Properties’ net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Gladstone Land | 5.29% | 0.69% | 0.33% |
Urstadt Biddle Properties | 28.19% | 11.70% | 4.13% |
Analyst Ratings
This is a breakdown of recent ratings and recommmendations for Gladstone Land and Urstadt Biddle Properties, as reported by MarketBeat.com.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Gladstone Land | 0 | 0 | 3 | 0 | 3.00 |
Urstadt Biddle Properties | 0 | 1 | 2 | 0 | 2.67 |
Gladstone Land presently has a consensus target price of $22.67, indicating a potential upside of 38.04%. Urstadt Biddle Properties has a consensus target price of $19.00, indicating a potential upside of 9.51%. Given Gladstone Land’s stronger consensus rating and higher possible upside, analysts clearly believe Gladstone Land is more favorable than Urstadt Biddle Properties.
Summary
Urstadt Biddle Properties beats Gladstone Land on 11 of the 17 factors compared between the two stocks.
About Gladstone Land
Gladstone Land Corp. is an agricultural real estate investment trust, which engages in the business of owning and leasing farmland. It also includes farm-related facilities, such as cooling facilities, packinghouses, processing facilities, and various storage facilities. The company was founded by David Gladstone on June 14, 1997 and is headquartered in McLean, VA.
About Urstadt Biddle Properties
Urstadt Biddle Properties, Inc. operates as a real estate investment trust, which engages in the acquisition, ownership, and management of commercial properties. It operates through the Ridgeway and All Other Operating segments. The company was founded on July 7, 1969 and is headquartered in Greenwich, CT.
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