Comparing Gladstone Commercial (NASDAQ:GOODN) & Armada Hoffler Properties (NYSE:AHH)

Gladstone Commercial (NASDAQ:GOODN) and Armada Hoffler Properties (NYSE:AHH) are both real estate companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, profitability, risk, analyst recommendations, dividends, institutional ownership and valuation.

Institutional & Insider Ownership

66.3% of Armada Hoffler Properties shares are owned by institutional investors. 11.9% of Armada Hoffler Properties shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Gladstone Commercial and Armada Hoffler Properties”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gladstone Commercial	$145.15 million	N/A	N/A	N/A	N/A
Armada Hoffler Properties	$735.26 million	1.34	$8.29 million	$0.09	122.89

Armada Hoffler Properties has higher revenue and earnings than Gladstone Commercial.

Profitability

This table compares Gladstone Commercial and Armada Hoffler Properties’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Gladstone Commercial	N/A	N/A	N/A
Armada Hoffler Properties	1.10%	1.26%	0.32%

Analyst Recommendations

This is a summary of current ratings and recommmendations for Gladstone Commercial and Armada Hoffler Properties, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gladstone Commercial	0	0	0	0	N/A
Armada Hoffler Properties	0	1	1	0	2.50

Armada Hoffler Properties has a consensus target price of $11.75, suggesting a potential upside of 6.24%. Given Armada Hoffler Properties’ higher possible upside, analysts plainly believe Armada Hoffler Properties is more favorable than Gladstone Commercial.

Dividends

Gladstone Commercial pays an annual dividend of $1.66 per share and has a dividend yield of 6.8%. Armada Hoffler Properties pays an annual dividend of $0.82 per share and has a dividend yield of 7.4%. Armada Hoffler Properties pays out 911.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Summary

Armada Hoffler Properties beats Gladstone Commercial on 9 of the 10 factors compared between the two stocks.

About Gladstone Commercial

Gladstone Commercial Corporation is a real estate investment trust focused on acquiring, owning, and operating net leased industrial and office properties across the United States. Including payments through January 2024, Gladstone Commercial has paid 229 consecutive monthly cash distributions on its common stock. Prior to paying distributions on a monthly basis, Gladstone Commercial paid five consecutive quarterly cash distributions. Gladstone Commercial has never skipped or deferred a distribution since its inception in 2003.

About Armada Hoffler Properties

Armada Hoffler Properties, Inc. (the “Company”) is a vertically integrated, self-managed real estate investment trust (“REIT”) with over four decades of experience developing, building, acquiring, and managing high-quality retail, office, and multifamily properties located primarily in the Mid-Atlantic and Southeastern United States. In addition to the ownership of the Company’s operating property portfolio, the Company develops and builds properties for its own account and through joint ventures between the Company and unaffiliated partners and also invests in development projects through real estate financing arrangements. The Company also provides general construction and development services to third-party clients. The Company’s construction and development experience includes mid- and high-rise office buildings, retail strip malls, retail power centers, multifamily apartment communities, hotels and conference centers, single- and multi-tenant industrial, distribution, and manufacturing facilities, educational, medical, and special purpose facilities, government projects, parking garages, and mixed-use town centers. The Company is the sole general partner of Armada Hoffler, L.P. (the “Operating Partnership”) and, as of March 31, 2024, owned 75.5% of the economic interest in the Operating Partnership, of which 0.1% is held as general partnership units. The operations of the Company are conducted primarily through the Operating Partnership and the wholly owned subsidiaries thereof.