Gladstone Commercial (NASDAQ:GOOD – Get Free Report) and Industrial Logistics Properties Trust (NASDAQ:ILPT – Get Free Report) are both small-cap real estate companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, earnings, analyst recommendations, dividends, profitability, institutional ownership and valuation.
Institutional and Insider Ownership
45.5% of Gladstone Commercial shares are held by institutional investors. Comparatively, 49.1% of Industrial Logistics Properties Trust shares are held by institutional investors. 1.3% of Gladstone Commercial shares are held by company insiders. Comparatively, 2.3% of Industrial Logistics Properties Trust shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Risk & Volatility
Gladstone Commercial has a beta of 1.07, meaning that its share price is 7% more volatile than the S&P 500. Comparatively, Industrial Logistics Properties Trust has a beta of 2.49, meaning that its share price is 149% more volatile than the S&P 500.
Dividends
Profitability
This table compares Gladstone Commercial and Industrial Logistics Properties Trust’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Gladstone Commercial | 14.55% | 14.61% | 1.99% |
| Industrial Logistics Properties Trust | -10.37% | -5.34% | -0.91% |
Analyst Recommendations
This is a breakdown of recent ratings and recommmendations for Gladstone Commercial and Industrial Logistics Properties Trust, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Gladstone Commercial | 0 | 4 | 0 | 0 | 2.00 |
| Industrial Logistics Properties Trust | 1 | 1 | 1 | 0 | 2.00 |
Gladstone Commercial currently has a consensus target price of $12.83, indicating a potential downside of 1.36%. Industrial Logistics Properties Trust has a consensus target price of $11.50, indicating a potential upside of 37.89%. Given Industrial Logistics Properties Trust’s higher possible upside, analysts plainly believe Industrial Logistics Properties Trust is more favorable than Gladstone Commercial.
Valuation & Earnings
This table compares Gladstone Commercial and Industrial Logistics Properties Trust”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Gladstone Commercial | $170.20 million | 3.70 | $19.29 million | $0.26 | 50.04 |
| Industrial Logistics Properties Trust | $448.85 million | 1.24 | -$66.19 million | ($0.72) | -11.58 |
Gladstone Commercial has higher earnings, but lower revenue than Industrial Logistics Properties Trust. Industrial Logistics Properties Trust is trading at a lower price-to-earnings ratio than Gladstone Commercial, indicating that it is currently the more affordable of the two stocks.
Summary
Gladstone Commercial beats Industrial Logistics Properties Trust on 8 of the 15 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 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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