SL Green Realty (NYSE:SLG – Get Free Report) and Gladstone Commercial (NASDAQ:GOOD – Get Free Report) are both finance companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, profitability, dividends, analyst recommendations, earnings, institutional ownership and risk.
Dividends
SL Green Realty pays an annual dividend of $3.09 per share and has a dividend yield of 6.4%. Gladstone Commercial pays an annual dividend of $1.20 per share and has a dividend yield of 10.6%. SL Green Realty pays out 30,900.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Gladstone Commercial pays out 666.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. SL Green Realty has raised its dividend for 1 consecutive years. Gladstone Commercial is clearly the better dividend stock, given its higher yield and lower payout ratio.
Volatility and Risk
SL Green Realty has a beta of 1.6, meaning that its stock price is 60% more volatile than the S&P 500. Comparatively, Gladstone Commercial has a beta of 1.11, meaning that its stock price is 11% more volatile than the S&P 500.
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| SL Green Realty | $886.27 million | 3.91 | $30.65 million | $0.01 | 4,865.00 |
| Gladstone Commercial | $149.39 million | 3.66 | $24.00 million | $0.18 | 62.78 |
SL Green Realty has higher revenue and earnings than Gladstone Commercial. Gladstone Commercial is trading at a lower price-to-earnings ratio than SL Green Realty, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of recent ratings and recommmendations for SL Green Realty and Gladstone Commercial, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| SL Green Realty | 2 | 9 | 6 | 0 | 2.24 |
| Gladstone Commercial | 0 | 3 | 0 | 0 | 2.00 |
SL Green Realty currently has a consensus target price of $56.83, suggesting a potential upside of 16.82%. Gladstone Commercial has a consensus target price of $12.00, suggesting a potential upside of 6.19%. Given SL Green Realty’s stronger consensus rating and higher probable upside, analysts plainly believe SL Green Realty is more favorable than Gladstone Commercial.
Profitability
This table compares SL Green Realty and Gladstone Commercial’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| SL Green Realty | 1.75% | -0.22% | -0.08% |
| Gladstone Commercial | 13.59% | 11.77% | 1.78% |
Institutional & Insider Ownership
90.0% of SL Green Realty shares are owned by institutional investors. Comparatively, 45.5% of Gladstone Commercial shares are owned by institutional investors. 5.0% of SL Green Realty shares are owned by insiders. Comparatively, 1.4% of Gladstone Commercial shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Summary
SL Green Realty beats Gladstone Commercial on 11 of the 17 factors compared between the two stocks.
About SL Green Realty
3SL Green Realty Corp., Manhattan’s largest office landlord, is a fully integrated real estate investment trust, or REIT, that is focused primarily on acquiring, managing and maximizing value of Manhattan commercial properties. As of June 30, 2022, SL Green held interests in 64 buildings totaling 34.4 million square feet. This included ownership interests in 26.3 million square feet of Manhattan buildings and 7.2 million square feet securing debt and preferred equity investments.
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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