Gladstone Land (NASDAQ:LAND) and Physicians Realty Trust (NASDAQ:DOC) Financial Comparison

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

Analyst Recommendations

This is a summary of current ratings and recommmendations for Physicians Realty Trust and Gladstone Land, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Physicians Realty Trust 0 6 1 0 2.14
Gladstone Land 1 0 2 0 2.33

Physicians Realty Trust presently has a consensus price target of $18.04, indicating a potential upside of 1.12%. Gladstone Land has a consensus price target of $14.25, indicating a potential upside of 20.66%. Given Gladstone Land’s stronger consensus rating and higher probable upside, analysts clearly believe Gladstone Land is more favorable than Physicians Realty Trust.

Dividends

Physicians Realty Trust pays an annual dividend of $0.92 per share and has a dividend yield of 5.2%. Gladstone Land pays an annual dividend of $0.53 per share and has a dividend yield of 4.5%. Physicians Realty Trust pays out 85.2% 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 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. Physicians Realty Trust has increased its dividend for 2 consecutive years. Physicians Realty Trust is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider & Institutional Ownership

94.4% of Physicians Realty Trust shares are owned by institutional investors. Comparatively, 30.1% of Gladstone Land shares are owned by institutional investors. 0.6% of Physicians Realty Trust shares are owned by company insiders. Comparatively, 12.4% of Gladstone Land shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Physicians Realty Trust and Gladstone Land’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Physicians Realty Trust $422.55 million 7.82 $56.23 million $1.08 16.52
Gladstone Land $36.69 million 6.70 $2.63 million $0.51 23.16

Physicians Realty Trust has higher revenue and earnings than Gladstone Land. Physicians Realty 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.

Risk and Volatility

Physicians Realty Trust has a beta of 0.42, meaning that its share price is 58% less volatile than the S&P 500. Comparatively, Gladstone Land has a beta of 0.78, meaning that its share price is 22% less volatile than the S&P 500.

Profitability

This table compares Physicians Realty Trust and Gladstone Land’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Physicians Realty Trust 12.61% 2.11% 1.24%
Gladstone Land 15.13% 2.59% 0.86%

Summary

Physicians Realty Trust beats Gladstone Land on 9 of the 17 factors compared between the two stocks.

About Physicians Realty Trust

Physicians Realty Trust is a self-managed healthcare real estate company organized to acquire, selectively develop, own and manage healthcare properties that are leased to physicians, hospitals and healthcare delivery systems. The Company invests in real estate that is integral to providing high quality healthcare. The Company conducts its business through an UPREIT structure in which its properties are owned by Physicians Realty L.P., a Delaware limited partnership (the “operating partnership”), directly or through limited partnerships, limited liability companies or other subsidiaries. The Company is the sole general partner of the operating partnership and, as of March 31, 2019, owned approximately 97.3% of OP units.

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.

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