Gladstone Land Corporation (NASDAQ: LAND) and Communications Sales & Leasing,Inc. (NASDAQ:UNIT) are both finance companies, but which is the better stock? We will compare the two companies based on the strength of their risk, institutional ownership, profitability, earnings, valuation, analyst recommendations and dividends.

Profitability

This table compares Gladstone Land Corporation and Communications Sales & Leasing,Inc.’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Gladstone Land Corporation 2.58% 0.57% 0.15%
Communications Sales & Leasing,Inc. -5.41% N/A -1.29%

Earnings and Valuation

This table compares Gladstone Land Corporation and Communications Sales & Leasing,Inc.’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Gladstone Land Corporation $19.38 million 8.48 $13.92 million $0.05 273.65
Communications Sales & Leasing,Inc. $831.65 million 4.12 $681.10 million ($0.32) -60.97

Communications Sales & Leasing,Inc. has higher revenue and earnings than Gladstone Land Corporation. Communications Sales & Leasing,Inc. is trading at a lower price-to-earnings ratio than Gladstone Land Corporation, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

24.0% of Gladstone Land Corporation shares are held by institutional investors. Comparatively, 58.1% of Communications Sales & Leasing,Inc. shares are held by institutional investors. 21.9% of Gladstone Land Corporation shares are held by company insiders. Comparatively, 0.4% of Communications Sales & Leasing,Inc. shares are held 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.

Volatility and Risk

Gladstone Land Corporation has a beta of 1.03, suggesting that its share price is 3% more volatile than the S&P 500. Comparatively, Communications Sales & Leasing,Inc. has a beta of 1.2, suggesting that its share price is 20% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Gladstone Land Corporation and Communications Sales & Leasing,Inc., as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Gladstone Land Corporation 0 0 2 0 3.00
Communications Sales & Leasing,Inc. 0 1 8 1 3.00

Gladstone Land Corporation presently has a consensus target price of $14.25, indicating a potential upside of 4.17%. Communications Sales & Leasing,Inc. has a consensus target price of $31.14, indicating a potential upside of 59.63%. Given Communications Sales & Leasing,Inc.’s higher probable upside, analysts plainly believe Communications Sales & Leasing,Inc. is more favorable than Gladstone Land Corporation.

Dividends

Gladstone Land Corporation pays an annual dividend of $0.53 per share and has a dividend yield of 3.9%. Communications Sales & Leasing,Inc. pays an annual dividend of $2.40 per share and has a dividend yield of 12.3%. Gladstone Land Corporation pays out 1,060.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Communications Sales & Leasing,Inc. pays out -750.0% of its earnings in the form of a dividend. Communications Sales & Leasing,Inc. is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Communications Sales & Leasing,Inc. beats Gladstone Land Corporation on 9 of the 15 factors compared between the two stocks.

About Gladstone Land Corporation

Gladstone Land Corporation is an agricultural real estate investment trust (REIT). The Company is engaged in the business of owning and leasing farmland. The Company also owns various farm-related facilities, such as cooling facilities, buildings utilized for the storage and assembly of boxes for shipping produce (box barns), packinghouses, processing facilities and various storage facilities. The Company is engaged in leasing its farms and farm-related facilities to independent or corporate farming operations. As of July 17, 2017, the Company owned 69 farms, including 58,777 total acres across seven states in the United States (Arizona, California, Colorado, Florida, Michigan, Nebraska and Oregon). As of December 31, 2016, the Company’s farms and facilities were leased to 40 different, unrelated tenants that are either independent or corporate farming operations. The Company focuses to own primarily single-tenant, agricultural real property.

About Communications Sales & Leasing,Inc.

Uniti Group Inc., formerly Communications Sales & Leasing, Inc., is an internally managed real estate investment trust engaged in the acquisition and construction of infrastructure in the communications industry. The Company focuses on acquiring and constructing fiber optic broadband networks, wireless communications towers, copper and coaxial broadband networks and data centers. It operates in four segments: Leasing, Fiber Infrastructure, Towers and Consumer Competitive Local Exchange Carrier (Consumer CLEC). The Leasing segment includes Uniti Leasing. The Fiber Infrastructure segment includes Uniti Fiber business. The Towers segment includes Uniti Towers and its ground lease investments. The Consumer CLEC segment includes Talk America. As of July 3, 2017, the Company and its subsidiaries owned approximately 88,100 fiber network route miles, representing approximately 4.8 million fiber strand miles and approximately 231,900 route miles of copper cable lines across 32 states.

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