Analyzing Gladstone Land (NASDAQ:LAND) & SBA Communications (NASDAQ:SBAC)
by Mitch Edgeman · The Markets DailySBA Communications (NASDAQ:SBAC – Get Free Report) and Gladstone Land (NASDAQ:LAND – Get Free Report) are both real estate companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, institutional ownership, dividends, earnings, profitability, analyst recommendations and risk.
Analyst Ratings
This is a breakdown of recent ratings and target prices for SBA Communications and Gladstone Land, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| SBA Communications | 0 | 10 | 8 | 0 | 2.44 |
| Gladstone Land | 1 | 2 | 0 | 1 | 2.25 |
SBA Communications presently has a consensus target price of $226.53, indicating a potential upside of 21.04%. Gladstone Land has a consensus target price of $10.00, indicating a potential upside of 34.95%. Given Gladstone Land’s higher possible upside, analysts plainly believe Gladstone Land is more favorable than SBA Communications.
Institutional and Insider Ownership
97.3% of SBA Communications shares are owned by institutional investors. Comparatively, 53.6% of Gladstone Land shares are owned by institutional investors. 9.5% of SBA Communications shares are owned by insiders. Comparatively, 6.1% of Gladstone Land shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Risk & Volatility
SBA Communications has a beta of 1, suggesting that its share price has a similar volatility profile to the S&P 500.Comparatively, Gladstone Land has a beta of 1.1, suggesting that its share price is 10% more volatile than the S&P 500.
Dividends
SBA Communications pays an annual dividend of $5.00 per share and has a dividend yield of 2.7%. Gladstone Land pays an annual dividend of $0.56 per share and has a dividend yield of 7.6%. SBA Communications pays out 53.9% of its earnings in the form of a dividend. Gladstone Land pays out -101.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. SBA Communications has raised its dividend for 6 consecutive years and Gladstone Land has raised its dividend for 2 consecutive years. Gladstone Land is clearly the better dividend stock, given its higher yield and lower payout ratio.
Valuation and Earnings
This table compares SBA Communications and Gladstone Land”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| SBA Communications | $2.87 billion | 6.92 | $1.05 billion | $9.28 | 20.17 |
| Gladstone Land | $88.48 million | 3.61 | $13.53 million | ($0.55) | -13.47 |
SBA Communications has higher revenue and earnings than Gladstone Land. Gladstone Land is trading at a lower price-to-earnings ratio than SBA Communications, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares SBA Communications and Gladstone Land’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| SBA Communications | 34.51% | -20.67% | 8.56% |
| Gladstone Land | -7.31% | -0.96% | -0.53% |
Summary
SBA Communications beats Gladstone Land on 12 of the 18 factors compared between the two stocks.
About SBA Communications
SBA Communications Corporation is a leading independent owner and operator of wireless communications infrastructure including towers, buildings, rooftops, distributed antenna systems (DAS) and small cells. With a portfolio of more than 39,000 communications sites throughout the Americas, Africa and in Asia, SBA is listed on NASDAQ under the symbol SBAC. Our organization is part of the S&P 500 and is one of the top Real Estate Investment Trusts (REITs) by market capitalization.
About Gladstone Land
Founded in 1997, Gladstone Land is a publicly traded real estate investment trust that acquires and owns farmland and farm-related properties located in major agricultural markets in the U.S. and leases its properties to unrelated third-party farmers. The Company, which reports the aggregate fair value of its farmland holdings on a quarterly basis, currently owns 169 farms, comprised of approximately 116,000 acres in 15 different states and over 45,000 acre-feet of banked water in California, valued at a total of approximately $1.6 billion. Gladstone Land’s farms are predominantly located in regions where its tenants are able to grow fresh produce annual row crops, such as berries and vegetables, which are generally planted and harvested annually. The Company also owns farms growing permanent crops, such as almonds, apples, cherries, figs, lemons, olives, pistachios, and other orchards, as well as blueberry groves and vineyards, which are generally planted every 20-plus years and harvested annually. Approximately 40% of the Company’s fresh produce acreage is either organic or in transition to become organic, and over 10% of its permanent crop acreage falls into this category. The Company may also acquire property related to farming, such as cooling facilities, processing buildings, packaging facilities, and distribution centers. Gladstone Land pays monthly distributions to its stockholders and has paid 129 consecutive monthly cash distributions on its common stock since its initial public offering in January 2013. The Company has increased its common distributions 32 times over the prior 35 quarters, and the current per-share distribution on its common stock is $0.0464 per month, or $0.5568 per year.