Contrasting Gladstone Commercial (NASDAQ:GOOD) and Artis Real Estate Investment Trust (OTCMKTS:ARESF)

Artis Real Estate Investment Trust (OTCMKTS:ARESF) and Gladstone Commercial (NASDAQ:GOOD) are both real estate companies, but which is the superior business? We will contrast the two businesses based on the strength of their dividends, earnings, profitability, institutional ownership, analyst recommendations, valuation and risk.

Earnings & Valuation

This table compares Artis Real Estate Investment Trust and Gladstone Commercial’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Artis Real Estate Investment Trust	N/A	N/A	N/A	$0.96	4.92
Gladstone Commercial	$147.58 million	3.93	$4.99 million	($0.22)	-65.45

Gladstone Commercial has higher revenue and earnings than Artis Real Estate Investment Trust. Gladstone Commercial is trading at a lower price-to-earnings ratio than Artis Real Estate Investment Trust, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

19.7% of Artis Real Estate Investment Trust shares are owned by institutional investors. Comparatively, 45.5% of Gladstone Commercial shares are owned by institutional investors. 1.5% of Gladstone Commercial shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Artis Real Estate Investment Trust and Gladstone Commercial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Artis Real Estate Investment Trust	N/A	N/A	N/A
Gladstone Commercial	2.82%	2.36%	0.36%

Analyst Ratings

This is a breakdown of current recommendations and price targets for Artis Real Estate Investment Trust and Gladstone Commercial, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Artis Real Estate Investment Trust	0	0	0	0	N/A
Gladstone Commercial	0	1	1	0	2.50

Artis Real Estate Investment Trust presently has a consensus target price of $12.38, indicating a potential upside of 163.30%. Gladstone Commercial has a consensus target price of $15.50, indicating a potential upside of 7.64%. Given Artis Real Estate Investment Trust’s higher possible upside, analysts clearly believe Artis Real Estate Investment Trust is more favorable than Gladstone Commercial.

Dividends

Artis Real Estate Investment Trust pays an annual dividend of $0.81 per share and has a dividend yield of 17.2%. Gladstone Commercial pays an annual dividend of $1.20 per share and has a dividend yield of 8.3%. Artis Real Estate Investment Trust pays out 84.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Gladstone Commercial pays out -545.5% of its earnings in the form of a dividend. Gladstone Commercial has raised its dividend for 2 consecutive years.

Summary

Gladstone Commercial beats Artis Real Estate Investment Trust on 9 of the 13 factors compared between the two stocks.

About Artis Real Estate Investment Trust

Artis is a diversified Canadian real estate investment trust with a portfolio of industrial, office and retail properties in Canada and the United States. Artis's vision is to build a best-in-class asset management and investment platform focused on growing net asset value per unit and distributions for investors through value investing in real estate.

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.