Gladstone Commercial (NASDAQ:GOOD – Get Free Report) and First Industrial Realty Trust (NYSE:FR – Get Free Report) are both real estate companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, risk, earnings, dividends, valuation, analyst recommendations and institutional ownership.
Risk & Volatility
Gladstone Commercial has a beta of 1.08, meaning that its share price is 8% more volatile than the S&P 500. Comparatively, First Industrial Realty Trust has a beta of 1.03, meaning that its share price is 3% more volatile than the S&P 500.
Profitability
This table compares Gladstone Commercial and First Industrial Realty Trust’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Gladstone Commercial | 14.55% | 14.61% | 1.99% |
| First Industrial Realty Trust | 47.97% | 12.99% | 6.41% |
Institutional and Insider Ownership
Dividends
Gladstone Commercial pays an annual dividend of $1.20 per share and has a dividend yield of 9.6%. First Industrial Realty Trust pays an annual dividend of $2.00 per share and has a dividend yield of 3.3%. Gladstone Commercial pays out 461.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. First Industrial Realty Trust pays out 73.0% of its earnings in the form of a dividend. First Industrial Realty Trust has raised its dividend for 12 consecutive years.
Valuation and Earnings
This table compares Gladstone Commercial and First Industrial Realty Trust”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Gladstone Commercial | $161.34 million | 3.74 | $19.29 million | $0.26 | 47.96 |
| First Industrial Realty Trust | $727.08 million | 11.15 | $247.44 million | $2.74 | 22.33 |
First Industrial Realty Trust has higher revenue and earnings than Gladstone Commercial. First Industrial Realty Trust is trading at a lower price-to-earnings ratio than Gladstone Commercial, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of recent recommendations and price targets for Gladstone Commercial and First Industrial Realty Trust, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Gladstone Commercial | 0 | 4 | 0 | 0 | 2.00 |
| First Industrial Realty Trust | 0 | 7 | 7 | 1 | 2.60 |
Gladstone Commercial presently has a consensus target price of $12.83, suggesting a potential upside of 2.91%. First Industrial Realty Trust has a consensus target price of $67.43, suggesting a potential upside of 10.23%. Given First Industrial Realty Trust’s stronger consensus rating and higher possible upside, analysts clearly believe First Industrial Realty Trust is more favorable than Gladstone Commercial.
Summary
First Industrial Realty Trust beats Gladstone Commercial on 13 of the 18 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 First Industrial Realty Trust
First Industrial Realty Trust, Inc. (NYSE: FR) is a leading U.S.-only owner, operator, developer and acquirer of logistics properties. Through our fully integrated operating and investing platform, we provide high quality facilities and industry-leading customer service to multinational corporations and regional firms that are essential for their supply chains. Our portfolio and new investments are concentrated in 15 target MSAs with an emphasis on supply-constrained, coastally oriented markets. In total, we own and have under development approximately 68.5 million square feet of industrial space as of December 31, 2023.
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