Financial Contrast: Gladstone Land (NASDAQ:LAND) and Four Corners Property Trust (NASDAQ:FCPT)

Gladstone Land (NASDAQ:LAND) and Four Corners Property Trust (NYSE:FCPT) are both small-cap finance companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, risk, dividends, valuation, earnings, institutional ownership and profitability.

Analyst Ratings

This is a summary of recent ratings for Gladstone Land and Four Corners Property Trust, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Gladstone Land 1 0 1 0 2.00
Four Corners Property Trust 0 3 2 0 2.40

Gladstone Land currently has a consensus price target of $15.00, indicating a potential upside of 29.31%. Four Corners Property Trust has a consensus price target of $30.60, indicating a potential upside of 8.05%. Given Gladstone Land’s higher possible upside, analysts clearly believe Gladstone Land is more favorable than Four Corners Property Trust.

Volatility & Risk

Gladstone Land has a beta of 0.94, indicating that its share price is 6% less volatile than the S&P 500. Comparatively, Four Corners Property Trust has a beta of 0.27, indicating that its share price is 73% less volatile than the S&P 500.

Earnings & Valuation

This table compares Gladstone Land and Four Corners Property Trust’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Gladstone Land $36.69 million 5.84 $2.63 million $0.51 22.75
Four Corners Property Trust $143.63 million 13.49 $82.39 million $1.41 20.09

Four Corners Property Trust has higher revenue and earnings than Gladstone Land. Four Corners Property Trust is trading at a lower price-to-earnings ratio than Gladstone Land, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

30.2% of Gladstone Land shares are owned by institutional investors. Comparatively, 89.9% of Four Corners Property Trust shares are owned by institutional investors. 12.4% of Gladstone Land shares are owned by company insiders. Comparatively, 0.7% of Four Corners Property Trust shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Dividends

Gladstone Land pays an annual dividend of $0.53 per share and has a dividend yield of 4.6%. Four Corners Property Trust pays an annual dividend of $1.15 per share and has a dividend yield of 4.1%. Gladstone Land pays out 103.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Four Corners Property Trust pays out 81.6% 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 Land has increased its dividend for 3 consecutive years and Four Corners Property Trust has increased its dividend for 2 consecutive years. Gladstone Land is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares Gladstone Land and Four Corners Property Trust’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Gladstone Land 8.09% 1.73% 0.54%
Four Corners Property Trust 56.35% 12.63% 6.62%

Summary

Four Corners Property Trust beats Gladstone Land on 11 of the 17 factors compared between the two stocks.

About Gladstone Land

Gladstone Land is a publicly-traded real estate investment trust that invests in farmland and farm-related properties located in major agricultural markets in the U.S., which it leases to unrelated third-party farmer-tenants. The Company reports the current fair value of its farmland on a quarterly basis; as of December 31, 2018, its estimated net asset value was $12.88 per share. Gladstone Land currently owns 86 farms, comprised of 73,900 acres in 10 different states across the U.S., valued at approximately $620 million. Its acreage is predominantly concentrated in locations where its tenants are able to grow fresh produce annual row crops, such as berries and vegetables, which are generally planted and harvested annually; as well as permanent crops, such as almonds, blueberries, and pistachios, which are generally planted every 10 to 20-plus years. The Company may also acquire property related to farming, such as cooling facilities, processing buildings, packaging facilities, and distribution centers. Gladstone Land pays monthly distributions to its stockholders and has paid 72 consecutive monthly cash distributions on its common stock since its initial public offering in January 2013. The current per-share distribution rate on its common stock is $0.04445 per month, or $0.5334 per year.

About Four Corners Property Trust

FCPT is a real estate investment trust primarily engaged in the acquisition and leasing of restaurant properties. The Company seeks to grow its portfolio primarily by acquiring additional real estate to lease, on a net basis, for use in the restaurant and food industry.

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