Gladstone Commercial (NASDAQ:GOOD – Get Free Report) and Rexford Industrial Realty (NYSE:REXR – Get Free Report) are both real estate companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, profitability, risk, valuation, earnings, institutional ownership and dividends.
Institutional and Insider Ownership
45.5% of Gladstone Commercial shares are owned by institutional investors. Comparatively, 99.5% of Rexford Industrial Realty shares are owned by institutional investors. 1.3% of Gladstone Commercial shares are owned by insiders. Comparatively, 1.8% of Rexford Industrial Realty shares are owned 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.
Risk and Volatility
Gladstone Commercial has a beta of 1.09, meaning that its share price is 9% more volatile than the S&P 500. Comparatively, Rexford Industrial Realty has a beta of 1.11, meaning that its share price is 11% more volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of current ratings and price targets for Gladstone Commercial and Rexford Industrial Realty, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Gladstone Commercial | 0 | 4 | 0 | 0 | 2.00 |
| Rexford Industrial Realty | 3 | 5 | 7 | 0 | 2.27 |
Gladstone Commercial currently has a consensus target price of $12.25, suggesting a potential upside of 19.13%. Rexford Industrial Realty has a consensus target price of $41.14, suggesting a potential upside of 9.34%. Given Gladstone Commercial’s higher possible upside, analysts clearly believe Gladstone Commercial is more favorable than Rexford Industrial Realty.
Valuation & Earnings
This table compares Gladstone Commercial and Rexford Industrial Realty”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Gladstone Commercial | $161.34 million | 3.10 | $19.29 million | $0.13 | 79.10 |
| Rexford Industrial Realty | $1.00 billion | 7.96 | $212.03 million | ($2.11) | -17.83 |
Rexford Industrial Realty has higher revenue and earnings than Gladstone Commercial. Rexford Industrial Realty is trading at a lower price-to-earnings ratio than Gladstone Commercial, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Gladstone Commercial and Rexford Industrial Realty’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Gladstone Commercial | 10.81% | 11.58% | 1.49% |
| Rexford Industrial Realty | -47.15% | -5.72% | -3.89% |
Dividends
Gladstone Commercial pays an annual dividend of $1.20 per share and has a dividend yield of 11.7%. Rexford Industrial Realty pays an annual dividend of $1.74 per share and has a dividend yield of 4.6%. Gladstone Commercial pays out 923.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Rexford Industrial Realty pays out -82.5% of its earnings in the form of a dividend. Rexford Industrial Realty has raised its dividend for 4 consecutive years.
Summary
Rexford Industrial Realty beats Gladstone Commercial on 10 of the 17 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 Rexford Industrial Realty
Rexford Industrial Realty, Inc. is a self-administered and self-managed real estate investment trust, which engages in owning and operating industrial properties in infill markets. The company was founded by Richard S. Ziman on January 18, 2013 and is headquartered in Los Angeles, CA.
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