Chatham Lodging Trust (NYSE:CLDT – Get Free Report) and Gladstone Land (NASDAQ:LAND – Get Free Report) are both small-cap finance companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, valuation, dividends, profitability, institutional ownership, analyst recommendations and risk.
Valuation & Earnings
This table compares Chatham Lodging Trust and Gladstone Land”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Chatham Lodging Trust | $295.08 million | 1.36 | $15.05 million | $0.14 | 60.96 |
| Gladstone Land | $88.34 million | 4.56 | $13.53 million | ($0.12) | -79.92 |
Profitability
This table compares Chatham Lodging Trust and Gladstone Land’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Chatham Lodging Trust | 5.10% | 1.92% | 1.26% |
| Gladstone Land | 15.31% | 2.01% | 1.08% |
Risk & Volatility
Chatham Lodging Trust has a beta of 1.05, suggesting that its stock price is 5% more volatile than the S&P 500. Comparatively, Gladstone Land has a beta of 1.07, suggesting that its stock price is 7% more volatile than the S&P 500.
Dividends
Chatham Lodging Trust pays an annual dividend of $0.40 per share and has a dividend yield of 4.7%. Gladstone Land pays an annual dividend of $0.56 per share and has a dividend yield of 5.8%. Chatham Lodging Trust pays out 285.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Gladstone Land pays out -466.7% of its earnings in the form of a dividend. Chatham Lodging Trust has raised its dividend for 2 consecutive years and Gladstone Land has raised its dividend for 2 consecutive years. Gladstone Land is clearly the better dividend stock, given its higher yield and lower payout ratio.
Analyst Ratings
This is a summary of current recommendations and price targets for Chatham Lodging Trust and Gladstone Land, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Chatham Lodging Trust | 0 | 1 | 2 | 1 | 3.00 |
| Gladstone Land | 0 | 3 | 1 | 0 | 2.25 |
Chatham Lodging Trust currently has a consensus target price of $11.00, suggesting a potential upside of 28.88%. Gladstone Land has a consensus target price of $10.00, suggesting a potential upside of 4.28%. Given Chatham Lodging Trust’s stronger consensus rating and higher probable upside, equities analysts plainly believe Chatham Lodging Trust is more favorable than Gladstone Land.
Institutional and Insider Ownership
88.4% of Chatham Lodging Trust shares are held by institutional investors. Comparatively, 53.6% of Gladstone Land shares are held by institutional investors. 8.1% of Chatham Lodging Trust shares are held by insiders. Comparatively, 6.1% of Gladstone Land shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Summary
Chatham Lodging Trust beats Gladstone Land on 11 of the 17 factors compared between the two stocks.
About Chatham Lodging Trust
Chatham Lodging Trust is a self-advised, publicly traded real estate investment trust (REIT) focused primarily on investing in upscale, extended-stay hotels and premium-branded, select-service hotels. The company owns 39 hotels totaling 5,915 rooms/suites in 16 states and the District of Columbia.
About Gladstone Land
Founded in 1997, Gladstone Land is a publicly traded real estate investment trust that acquires and owns farmland and farm-related properties located in major agricultural markets in the U.S. and leases its properties to unrelated third-party farmers. The Company, which reports the aggregate fair value of its farmland holdings on a quarterly basis, currently owns 169 farms, comprised of approximately 116,000 acres in 15 different states and over 45,000 acre-feet of banked water in California, valued at a total of approximately $1.6 billion. Gladstone Land’s farms are predominantly located in regions where its tenants are able to grow fresh produce annual row crops, such as berries and vegetables, which are generally planted and harvested annually. The Company also owns farms growing permanent crops, such as almonds, apples, cherries, figs, lemons, olives, pistachios, and other orchards, as well as blueberry groves and vineyards, which are generally planted every 20-plus years and harvested annually. Approximately 40% of the Company’s fresh produce acreage is either organic or in transition to become organic, and over 10% of its permanent crop acreage falls into this category. The Company may also acquire property related to farming, such as cooling facilities, processing buildings, packaging facilities, and distribution centers. Gladstone Land pays monthly distributions to its stockholders and has paid 129 consecutive monthly cash distributions on its common stock since its initial public offering in January 2013. The Company has increased its common distributions 32 times over the prior 35 quarters, and the current per-share distribution on its common stock is $0.0464 per month, or $0.5568 per year.
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