Contrasting Terreno Realty (NYSE:TRNO) & Gladstone Commercial (NASDAQ:GOODN)

Terreno Realty (NYSE:TRNO) and Gladstone Commercial (NASDAQ:GOODN) are both real estate companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, dividends, risk, earnings, analyst recommendations, valuation and profitability.

Dividends

Terreno Realty pays an annual dividend of $2.08 per share and has a dividend yield of 3.0%. Gladstone Commercial pays an annual dividend of $1.66 per share and has a dividend yield of 7.1%. Terreno Realty pays out 55.8% of its earnings in the form of a dividend. Terreno Realty has increased its dividend for 5 consecutive years.

Analyst Ratings

This is a breakdown of recent recommendations for Terreno Realty and Gladstone Commercial, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Terreno Realty	2	3	7	1	2.54
Gladstone Commercial	0	0	0	0	0.00

Terreno Realty currently has a consensus target price of $72.86, indicating a potential upside of 5.78%. Given Terreno Realty’s stronger consensus rating and higher possible upside, equities analysts clearly believe Terreno Realty is more favorable than Gladstone Commercial.

Profitability

This table compares Terreno Realty and Gladstone Commercial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Terreno Realty	77.22%	9.21%	7.07%
Gladstone Commercial	N/A	N/A	N/A

Valuation & Earnings

This table compares Terreno Realty and Gladstone Commercial”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Terreno Realty	$476.38 million	15.76	$402.99 million	$3.73	18.47
Gladstone Commercial	$170.20 million	N/A	N/A	N/A	N/A

Terreno Realty has higher revenue and earnings than Gladstone Commercial.

Summary

Terreno Realty beats Gladstone Commercial on 9 of the 11 factors compared between the two stocks.

About Terreno Realty

Terreno Realty Corporation (Terreno, and together with its subsidiaries, the Company) acquires, owns and operates industrial real estate in six major coastal U.S. markets: Los Angeles, Northern New Jersey/New York City, San Francisco Bay Area, Seattle, Miami, and Washington, D.C. All square feet, acres, occupancy and number of properties disclosed in these notes to the consolidated financial statements are unaudited. As of December 31, 2023, the Company owned 259 buildings aggregating approximately 16.0 million square feet, 45 improved land parcels consisting of approximately 152.4 acres, seven properties under development or redevelopment and approximately 62.7 acres of land entitled for future development. The Company is an internally managed Maryland corporation and elected to be taxed as a real estate investment trust (REIT) under Sections 856 through 860 of the Internal Revenue Code of 1986, as amended (the Code), commencing with its taxable year ended December 31, 2010.

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.