QTS Realty Trust (NYSE: QTS) and Gladstone Land Corporation (NASDAQ:LAND) are both finance companies, but which is the superior business? We will compare the two companies based on the strength of their risk, valuation, earnings, dividends, institutional ownership, profitability and analyst recommendations.
Valuation & Earnings
This table compares QTS Realty Trust and Gladstone Land Corporation’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|QTS Realty Trust||$422.74 million||6.20||$158.07 million||$0.40||134.20|
|Gladstone Land Corporation||$21.14 million||7.82||$15.48 million||$0.05||275.46|
QTS Realty Trust has higher revenue and earnings than Gladstone Land Corporation. QTS Realty Trust is trading at a lower price-to-earnings ratio than Gladstone Land Corporation, indicating that it is currently the more affordable of the two stocks.
This is a summary of current ratings and price targets for QTS Realty Trust and Gladstone Land Corporation, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|QTS Realty Trust||0||4||7||0||2.64|
|Gladstone Land Corporation||0||0||2||0||3.00|
QTS Realty Trust currently has a consensus target price of $56.64, suggesting a potential upside of 5.51%. Gladstone Land Corporation has a consensus target price of $14.13, suggesting a potential upside of 2.58%. Given QTS Realty Trust’s higher possible upside, research analysts clearly believe QTS Realty Trust is more favorable than Gladstone Land Corporation.
Insider and Institutional Ownership
21.1% of Gladstone Land Corporation shares are held by institutional investors. 17.3% of QTS Realty Trust shares are held by insiders. Comparatively, 21.9% of Gladstone Land Corporation shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
This table compares QTS Realty Trust and Gladstone Land Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|QTS Realty Trust||4.60%||2.04%||0.93%|
|Gladstone Land Corporation||2.58%||0.57%||0.15%|
QTS Realty Trust pays an annual dividend of $1.56 per share and has a dividend yield of 2.9%. Gladstone Land Corporation pays an annual dividend of $0.53 per share and has a dividend yield of 3.8%. QTS Realty Trust pays out 390.0% 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 Corporation pays out 1,060.2% 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 Corporation has raised its dividend for 2 consecutive years. Gladstone Land Corporation is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Volatility & Risk
QTS Realty Trust has a beta of 0.45, meaning that its share price is 55% less volatile than the S&P 500. Comparatively, Gladstone Land Corporation has a beta of 1, meaning that its share price has a similar volatility profile to the S&P 500.
QTS Realty Trust beats Gladstone Land Corporation on 9 of the 17 factors compared between the two stocks.
QTS Realty Trust Company Profile
QTS Realty Trust, Inc. (QTS) is a provider of secure, compliant data center solutions, hybrid cloud and fully managed services. The Company owns, develops and operates carrier-neutral and multi-tenant data centers. Its data centers are facilities that house the network and computer equipment of multiple customers and provide access to a range of communications carriers. The Company has an integrated platform through which it owns and operates its data centers and provides a range of information technology (IT) infrastructure solutions. Its spectrum of core data center products is referred to as 3Cs, which consists of Custom Data Center (C1), Colocation (C2), and Cloud and Managed Services (C3). Its 3C integrated technology platform provides information technology solutions for Web and information technology applications. Its data centers facilities are used by its customers to house, power and cool the networking equipment and computer systems that support their business processes.
Gladstone Land Corporation Company Profile
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.
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