Contrasting Gladstone Commercial (GOOD) and MITIE GRP PLC/ADR (MITFY)

Gladstone Commercial (NASDAQ:GOOD) and MITIE GRP PLC/ADR (OTCMKTS:MITFY) are both small-cap finance companies, but which is the better investment? We will compare the two companies based on the strength of their profitability, institutional ownership, analyst recommendations, dividends, risk, earnings and valuation.

Earnings and Valuation

This table compares Gladstone Commercial and MITIE GRP PLC/ADR’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Gladstone Commercial $94.80 million 5.76 $5.93 million $1.52 12.39
MITIE GRP PLC/ADR $2.92 billion 0.18 -$35.95 million $0.89 6.58



Gladstone Commercial has higher earnings, but lower revenue than MITIE GRP PLC/ADR. MITIE GRP PLC/ADR is trading at a lower price-to-earnings ratio than Gladstone Commercial, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Gladstone Commercial has a beta of 0.73, meaning that its stock price is 27% less volatile than the S&P 500. Comparatively, MITIE GRP PLC/ADR has a beta of 0.53, meaning that its stock price is 47% less volatile than the S&P 500.

Insider and Institutional Ownership

54.1% of Gladstone Commercial shares are held by institutional investors. 2.0% of Gladstone Commercial shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Gladstone Commercial and MITIE GRP PLC/ADR’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Gladstone Commercial 7.96% 3.26% 0.91%
MITIE GRP PLC/ADR N/A N/A N/A

Dividends

Gladstone Commercial pays an annual dividend of $1.50 per share and has a dividend yield of 8.0%. MITIE GRP PLC/ADR pays an annual dividend of $0.24 per share and has a dividend yield of 4.1%. Gladstone Commercial pays out 98.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. MITIE GRP PLC/ADR pays out 27.0% of its earnings in the form of a dividend.

Analyst Ratings

This is a summary of recent recommendations and price targets for Gladstone Commercial and MITIE GRP PLC/ADR, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Gladstone Commercial 0 1 3 0 2.75
MITIE GRP PLC/ADR 0 0 0 0 N/A

Gladstone Commercial presently has a consensus price target of $20.83, suggesting a potential upside of 10.58%. Given Gladstone Commercial’s higher possible upside, research analysts plainly believe Gladstone Commercial is more favorable than MITIE GRP PLC/ADR.

Summary

Gladstone Commercial beats MITIE GRP PLC/ADR on 12 of the 14 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 October 2018, Gladstone Commercial has paid 165 consecutive monthly cash distributions on its common stock. Prior to paying distributions on a monthly basis, Gladstone Commercial paid five consecutive quarterly cash distributions. The company has also paid 153 consecutive monthly cash distributions on its Series A Preferred Stock, 144 consecutive monthly cash distributions on its Series B Preferred Stock and 29 consecutive monthly cash distributions on its Series D Preferred Stock. Gladstone Commercial has never skipped, reduced or deferred a distribution since its inception in 2003.

About MITIE GRP PLC/ADR

Mitie Group plc, through its subsidiaries, provides strategic outsourcing services in the United Kingdom and internationally. It offers engineering services, such as technical and building maintenance services, as well as offers specialist services, such as heating, cooling, lighting, water treatment, and building controls; and security services and products, including security personnel, emergency mobile response solutions, and fire and security systems. The company also provides professional services, including capital project consultancy, energy consultancy, real estate advisory, records management consultancy, security and risk strategy, sustainability strategy, technical assets strategy, and workplace and design services; and cleaning and environmental services, such as pest control and landscaping services. In addition, it offers document management services; custody services, such as immigration and prison services; and indoor and outdoor event catering services. Further, the company provides property management services primarily to clients in the social housing sector; and painting and commercial refurbishment roofing services. Mitie Group plc was founded in 1987 and is headquartered in Southwark, the United Kingdom.

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