Star (NASDAQ:STHO – Get Rating) and Gladstone Commercial (NASDAQ:GOOD – Get Rating) are both small-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, valuation, earnings, institutional ownership, analyst recommendations, risk and dividends.
Analyst Recommendations
This is a breakdown of current ratings and target prices for Star and Gladstone Commercial, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Star | 0 | 0 | 0 | 0 | N/A |
| Gladstone Commercial | 0 | 1 | 2 | 0 | 2.67 |
Gladstone Commercial has a consensus target price of $16.83, indicating a potential upside of 50.84%. Given Gladstone Commercial’s higher probable upside, analysts plainly believe Gladstone Commercial is more favorable than Star.
Earnings and Valuation
This table compares Star and Gladstone Commercial’s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Star | N/A | N/A | N/A | N/A | N/A |
| Gladstone Commercial | $148.98 million | 3.00 | $9.30 million | ($0.11) | -101.45 |
Gladstone Commercial has higher revenue and earnings than Star.
Profitability
This table compares Star and Gladstone Commercial’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Star | N/A | N/A | N/A |
| Gladstone Commercial | 5.52% | 4.01% | 0.69% |
Insider & Institutional Ownership
45.8% of Gladstone Commercial shares are held by institutional investors. 1.5% of Gladstone Commercial shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Summary
Gladstone Commercial beats Star on 8 of the 8 factors compared between the two stocks.
About Star
(Get Rating)
Star Holdings engages in the non-ground lease related commercial real estate businesses principally in the United States. Star Holdings is based in New York.
About Gladstone Commercial
(Get Rating)
Gladstone Commercial Corp. is a real estate investment trust, which engages in the acquisition, managing and ownership of office and industrial properties. It operates through the Texas, Florida, Pennsylvania, Ohio, Georgia, North Carolina, Alabama, New Jersey, Michigan, South Carolina, and All Other States geographic locations. The company was founded by David John Gladstone on February 14, 2003 and is headquartered in McLean, VA.
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