Critical Review: Gladstone Land Corporation (LAND) versus CorEnergy Infrastructure Trust (CORR)

Gladstone Land Corporation (NASDAQ: LAND) and CorEnergy Infrastructure Trust (NYSE:CORR) are both small-cap finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, analyst recommendations, valuation, profitability, dividends, institutional ownership and earnings.

Institutional and Insider Ownership

24.7% of Gladstone Land Corporation shares are owned by institutional investors. Comparatively, 64.2% of CorEnergy Infrastructure Trust shares are owned by institutional investors. 21.9% of Gladstone Land Corporation shares are owned by company insiders. Comparatively, 1.0% of CorEnergy Infrastructure Trust shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Gladstone Land Corporation and CorEnergy Infrastructure Trust’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Gladstone Land Corporation 2.58% 0.57% 0.15%
CorEnergy Infrastructure Trust 38.26% 9.04% 5.17%

Valuation & Earnings

This table compares Gladstone Land Corporation and CorEnergy Infrastructure Trust’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Gladstone Land Corporation $21.14 million 7.27 $15.48 million $0.05 255.85
CorEnergy Infrastructure Trust $88.83 million 4.48 $71.15 million $2.41 13.87

CorEnergy Infrastructure Trust has higher revenue and earnings than Gladstone Land Corporation. CorEnergy Infrastructure 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.

Volatility & Risk

Gladstone Land Corporation has a beta of 1, suggesting that its stock price has a similar volatility profile to the S&P 500.Comparatively, CorEnergy Infrastructure Trust has a beta of 2.07, suggesting that its stock price is 107% more volatile than the S&P 500.

Dividends

Gladstone Land Corporation pays an annual dividend of $0.53 per share and has a dividend yield of 4.1%. CorEnergy Infrastructure Trust pays an annual dividend of $3.00 per share and has a dividend yield of 9.0%. 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. CorEnergy Infrastructure Trust pays out 124.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. CorEnergy Infrastructure Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Gladstone Land Corporation and CorEnergy Infrastructure Trust, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Gladstone Land Corporation 0 0 2 0 3.00
CorEnergy Infrastructure Trust 1 2 1 0 2.00

Gladstone Land Corporation presently has a consensus price target of $14.25, suggesting a potential upside of 11.42%. CorEnergy Infrastructure Trust has a consensus price target of $35.50, suggesting a potential upside of 6.19%. Given Gladstone Land Corporation’s stronger consensus rating and higher possible upside, analysts plainly believe Gladstone Land Corporation is more favorable than CorEnergy Infrastructure Trust.

Summary

CorEnergy Infrastructure Trust beats Gladstone Land Corporation on 10 of the 16 factors compared between the two stocks.

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 July 17, 2017, the Company owned 69 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.

CorEnergy Infrastructure Trust Company Profile

CorEnergy Infrastructure Trust, Inc. (CorEnergy) is focused on acquiring and financing midstream and downstream real estate assets within the United States energy infrastructure sector and concurrently entering into long-term triple-net participating leases with energy companies. The Company also provides other types of capital, including loans secured by energy infrastructure assets. The Company owns assets, such as pipelines, storage terminals, and transmission and distribution assets. It assets include Grand Isle Gathering System, Pinedale Liquids Gathering System (Pinedale LGS), Portland Terminal Facility, MoGas Pipeline System and Omega Pipeline.

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