Rexford Industrial Realty (NYSE:REXR – Get Free Report) and Gladstone Commercial (NASDAQ:GOOD – Get Free Report) are both real estate companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, profitability, earnings, risk, analyst recommendations, institutional ownership and dividends.
Institutional and Insider Ownership
99.5% of Rexford Industrial Realty shares are held by institutional investors. Comparatively, 45.5% of Gladstone Commercial shares are held by institutional investors. 1.8% of Rexford Industrial Realty shares are held by insiders. Comparatively, 1.3% of Gladstone Commercial shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Dividends
Rexford Industrial Realty pays an annual dividend of $1.74 per share and has a dividend yield of 4.5%. Gladstone Commercial pays an annual dividend of $1.20 per share and has a dividend yield of 10.5%. Rexford Industrial Realty pays out -82.5% of its earnings in the form of a dividend. 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. Rexford Industrial Realty has increased its dividend for 4 consecutive years.
Volatility and Risk
Rexford Industrial Realty has a beta of 1.18, meaning that its stock price is 18% more volatile than the S&P 500. Comparatively, Gladstone Commercial has a beta of 1.07, meaning that its stock price is 7% more volatile than the S&P 500.
Valuation and Earnings
This table compares Rexford Industrial Realty and Gladstone Commercial”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Rexford Industrial Realty | $1.00 billion | 8.11 | $212.03 million | ($2.11) | -18.18 |
| Gladstone Commercial | $170.20 million | 3.25 | $19.29 million | $0.26 | 43.90 |
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 Rexford Industrial Realty and Gladstone Commercial’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Rexford Industrial Realty | -47.15% | -5.72% | -3.89% |
| Gladstone Commercial | 14.55% | 14.61% | 1.99% |
Analyst Recommendations
This is a breakdown of current ratings and price targets for Rexford Industrial Realty and Gladstone Commercial, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Rexford Industrial Realty | 3 | 5 | 7 | 0 | 2.27 |
| Gladstone Commercial | 0 | 4 | 0 | 0 | 2.00 |
Rexford Industrial Realty currently has a consensus price target of $41.33, indicating a potential upside of 7.72%. Gladstone Commercial has a consensus price target of $12.83, indicating a potential upside of 12.43%. Given Gladstone Commercial’s higher possible upside, analysts plainly believe Gladstone Commercial is more favorable than Rexford Industrial Realty.
Summary
Rexford Industrial Realty beats Gladstone Commercial on 10 of the 17 factors compared between the two stocks.
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.
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.
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