Gladstone Land (NASDAQ:LAND – Get Free Report) and Industrial Logistics Properties Trust (NASDAQ:ILPT – Get Free Report) are both small-cap finance companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, dividends, risk, profitability, analyst recommendations, earnings and institutional ownership.
Profitability
This table compares Gladstone Land and Industrial Logistics Properties Trust’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Gladstone Land | 15.31% | 2.01% | 1.08% |
| Industrial Logistics Properties Trust | -11.93% | -5.93% | -1.04% |
Earnings and Valuation
This table compares Gladstone Land and Industrial Logistics Properties Trust”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Gladstone Land | $88.34 million | 4.63 | $13.53 million | ($0.12) | -81.25 |
| Industrial Logistics Properties Trust | $448.85 million | 1.17 | -$66.19 million | ($0.82) | -9.65 |
Gladstone Land has higher earnings, but lower revenue than Industrial Logistics Properties Trust. Gladstone Land is trading at a lower price-to-earnings ratio than Industrial Logistics Properties Trust, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
53.6% of Gladstone Land shares are held by institutional investors. Comparatively, 49.1% of Industrial Logistics Properties Trust shares are held by institutional investors. 6.1% of Gladstone Land shares are held by insiders. Comparatively, 2.3% of Industrial Logistics Properties Trust shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Risk & Volatility
Gladstone Land has a beta of 1.07, indicating that its stock price is 7% more volatile than the S&P 500. Comparatively, Industrial Logistics Properties Trust has a beta of 2.47, indicating that its stock price is 147% more volatile than the S&P 500.
Analyst Recommendations
This is a summary of recent recommendations for Gladstone Land and Industrial Logistics Properties Trust, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Gladstone Land | 0 | 3 | 1 | 0 | 2.25 |
| Industrial Logistics Properties Trust | 1 | 1 | 1 | 0 | 2.00 |
Gladstone Land presently has a consensus target price of $10.00, suggesting a potential upside of 2.56%. Industrial Logistics Properties Trust has a consensus target price of $6.20, suggesting a potential downside of 21.62%. Given Gladstone Land’s stronger consensus rating and higher probable upside, equities analysts clearly believe Gladstone Land is more favorable than Industrial Logistics Properties Trust.
Dividends
Gladstone Land pays an annual dividend of $0.56 per share and has a dividend yield of 5.7%. Industrial Logistics Properties Trust pays an annual dividend of $0.20 per share and has a dividend yield of 2.5%. Gladstone Land pays out -466.7% of its earnings in the form of a dividend. Industrial Logistics Properties Trust pays out -24.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Gladstone Land has increased its dividend for 2 consecutive years. Gladstone Land is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Summary
Gladstone Land beats Industrial Logistics Properties Trust on 13 of the 16 factors compared between the two stocks.
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.
About Industrial Logistics Properties Trust
Industrial Logistics Properties Trust (Nasdaq: ILPT) is a real estate investment trust, or REIT, focused on owning and leasing high quality distribution and logistics properties. As of December 31, 2023, ILPT's portfolio consisted of 411 properties containing approximately 60 million rentable square feet located in 39 states. Approximately 77% of ILPT's annualized rental revenues as of December 31, 2023 are derived from investment grade tenants, tenants that are subsidiaries of investment grade rated entities or Hawaii land leases. ILPT is managed by The RMR Group (Nasdaq: RMR), a leading U.S. alternative asset management company with over $41 billion in assets under management as of December 31, 2023 and more than 35 years of institutional experience in buying, selling, financing and operating commercial real estate. ILPT is headquartered in Newton, MA.
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