Gladstone Commercial (NASDAQ:GOOD – Get Rating) and Star (NASDAQ:STHO – Get Rating) are both small-cap finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their profitability, risk, institutional ownership, valuation, dividends, earnings and analyst recommendations.
Profitability
This table compares Gladstone Commercial and Star’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Gladstone Commercial | 5.52% | 4.01% | 0.69% |
| Star | N/A | N/A | N/A |
Analyst Recommendations
This is a breakdown of current recommendations and price targets for Gladstone Commercial and Star, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Gladstone Commercial | 0 | 1 | 2 | 0 | 2.67 |
| Star | 0 | 0 | 0 | 0 | N/A |
Gladstone Commercial presently has a consensus price target of $16.83, indicating a potential upside of 47.79%. Given Gladstone Commercial’s higher probable upside, equities research analysts plainly believe Gladstone Commercial is more favorable than Star.
Valuation and Earnings
This table compares Gladstone Commercial and Star’s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Gladstone Commercial | $148.98 million | 3.06 | $9.30 million | ($0.11) | -103.55 |
| Star | N/A | N/A | N/A | N/A | N/A |
Gladstone Commercial has higher revenue and earnings than Star.
Institutional & Insider Ownership
45.8% of Gladstone Commercial shares are held by institutional investors. 1.5% of Gladstone Commercial shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock 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 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.
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.
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