Gladstone Commercial (NASDAQ:GOODN) & Broadstone Net Lease (NYSE:BNL) Critical Review

Gladstone Commercial (NASDAQ:GOODN) and Broadstone Net Lease (NYSE:BNL) are both real estate companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, profitability, dividends, institutional ownership, valuation, analyst recommendations and risk.

Institutional and Insider Ownership

89.1% of Broadstone Net Lease shares are owned by institutional investors. 0.6% of Broadstone Net Lease shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Gladstone Commercial and Broadstone Net Lease, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gladstone Commercial	0	0	0	0	N/A
Broadstone Net Lease	1	3	2	0	2.17

Broadstone Net Lease has a consensus target price of $18.25, suggesting a potential upside of 0.83%. Given Broadstone Net Lease’s higher probable upside, analysts clearly believe Broadstone Net Lease is more favorable than Gladstone Commercial.

Valuation and Earnings

This table compares Gladstone Commercial and Broadstone Net Lease”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gladstone Commercial	$145.15 million	N/A	N/A	N/A	N/A
Broadstone Net Lease	$425.82 million	8.01	$155.48 million	$0.96	18.85

Broadstone Net Lease has higher revenue and earnings than Gladstone Commercial.

Dividends

Gladstone Commercial pays an annual dividend of $1.66 per share and has a dividend yield of 6.8%. Broadstone Net Lease pays an annual dividend of $1.16 per share and has a dividend yield of 6.4%. Broadstone Net Lease pays out 120.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Profitability

This table compares Gladstone Commercial and Broadstone Net Lease’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Gladstone Commercial	N/A	N/A	N/A
Broadstone Net Lease	36.78%	4.86%	2.96%

Summary

Broadstone Net Lease beats Gladstone Commercial on 8 of the 10 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 Broadstone Net Lease

Broadstone Net Lease, Inc. (the Corporation) is a Maryland corporation formed on October 18, 2007, that elected to be taxed as a real estate investment trust (REIT) commencing with the taxable year ended December 31, 2008. Broadstone Net Lease, LLC (the Corporation’s operating company, or the OP), is the entity through which the Corporation conducts its business and owns (either directly or through subsidiaries) all of the Corporation’s properties. The Corporation is the sole managing member of the OP. The membership units not owned by the Corporation are referred to as OP Units or non-controlling interests. As the Corporation conducts substantially all of its operations through the OP, it is structured as what is referred to as an umbrella partnership real estate investment trust (UPREIT). The Corporation’s common stock is listed on the New York Stock Exchange under the symbol BNL.