Gladstone Land (LAND) vs. OUTFRONT Media (OUT) Critical Survey

Gladstone Land (NASDAQ: LAND) and OUTFRONT Media (NYSE:OUT) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, profitability, analyst recommendations, institutional ownership, earnings, valuation and risk.

Profitability

This table compares Gladstone Land and OUTFRONT Media’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Gladstone Land 1.14% 0.25% 0.07%
OUTFRONT Media 7.71% 9.57% 3.12%

Volatility & Risk

Gladstone Land has a beta of 0.98, meaning that its share price is 2% less volatile than the S&P 500. Comparatively, OUTFRONT Media has a beta of 1.13, meaning that its share price is 13% more volatile than the S&P 500.

Earnings & Valuation

This table compares Gladstone Land and OUTFRONT Media’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Gladstone Land $17.32 million 10.69 $440,000.00 $0.03 452.82
OUTFRONT Media $1.51 billion 2.14 $90.90 million $0.84 27.88

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

Insider & Institutional Ownership

26.3% of Gladstone Land shares are held by institutional investors. 21.9% of Gladstone Land shares are held by insiders. Comparatively, 0.5% of OUTFRONT Media shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Dividends

Gladstone Land pays an annual dividend of $0.53 per share and has a dividend yield of 3.9%. OUTFRONT Media pays an annual dividend of $1.44 per share and has a dividend yield of 6.1%. Gladstone Land pays out 1,767.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. OUTFRONT Media pays out 171.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. OUTFRONT Media is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Gladstone Land and OUTFRONT Media, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Gladstone Land 0 1 2 0 2.67
OUTFRONT Media 0 2 4 0 2.67

Gladstone Land presently has a consensus target price of $14.63, indicating a potential upside of 7.70%. OUTFRONT Media has a consensus target price of $30.17, indicating a potential upside of 28.81%. Given OUTFRONT Media’s higher probable upside, analysts plainly believe OUTFRONT Media is more favorable than Gladstone Land.

Summary

OUTFRONT Media beats Gladstone Land on 11 of the 15 factors compared between the two stocks.

About Gladstone Land

Gladstone Land Corporation is an agricultural real estate investment trust (REIT). The Company is engaged in the business of owning and leasing farmland. The Company also owns various farm-related facilities, such as cooling facilities, buildings utilized for the storage and assembly of boxes for shipping produce (box barns), packinghouses, processing facilities and various storage facilities. The Company is engaged in leasing its farms and farm-related facilities to independent or corporate farming operations. As of September 12, 2017, the Company owned 72 farms, including 58,777 total acres across seven states in the United States (Arizona, California, Colorado, Florida, Michigan, Nebraska and Oregon). As of December 31, 2016, the Company’s farms and facilities were leased to 40 different, unrelated tenants that are either independent or corporate farming operations. The Company focuses to own primarily single-tenant, agricultural real property.

About OUTFRONT Media

OUTFRONT Media Inc. is a real estate investment trust (REIT), which provides advertising space (displays) on out-of-home advertising structures and sites in the United States and Canada. The Company’s segments are U.S. Media and Other. The U.S. Media segment includes U.S. Billboard and Transit. The Other segment includes International and Sports Marketing. The Company’s inventory consists of billboard displays, which are primarily located on the heavily traveled highways and roadways in Nielsen Designated Market Areas (DMAs), and transit advertising displays operated under multi-year contracts with municipalities in cities across the United States and Canada. The Company also has marketing and multimedia rights agreements with colleges, universities and other educational institutions, which entitle the Company to operate on-campus advertising displays, as well as manage marketing opportunities, media rights and experiential entertainment at sports events.

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