Reviewing CapitaLand Ascendas REIT (OTCMKTS:ACDSF) & Gladstone Commercial (NASDAQ:GOOD)

Gladstone Commercial (NASDAQ:GOOD) and CapitaLand Ascendas REIT (OTCMKTS:ACDSF) are both real estate companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, analyst recommendations, risk, profitability, institutional ownership, valuation and earnings.

Earnings and Valuation

This table compares Gladstone Commercial and CapitaLand Ascendas REIT”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gladstone Commercial	$161.34 million	3.75	$19.29 million	$0.18	69.44
CapitaLand Ascendas REIT	N/A	N/A	N/A	N/A	N/A

Gladstone Commercial has higher revenue and earnings than CapitaLand Ascendas REIT.

Dividends

Gladstone Commercial pays an annual dividend of $1.20 per share and has a dividend yield of 9.6%. CapitaLand Ascendas REIT pays an annual dividend of $0.14 per share and has a dividend yield of 7.4%. Gladstone Commercial pays out 666.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Profitability

This table compares Gladstone Commercial and CapitaLand Ascendas REIT’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Gladstone Commercial	12.74%	12.11%	1.71%
CapitaLand Ascendas REIT	N/A	N/A	N/A

Insider & Institutional Ownership

45.5% of Gladstone Commercial shares are held by institutional investors. Comparatively, 34.2% of CapitaLand Ascendas REIT shares are held by institutional investors. 1.3% 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.

Analyst Ratings

This is a summary of recent ratings for Gladstone Commercial and CapitaLand Ascendas REIT, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gladstone Commercial	0	4	0	0	2.00
CapitaLand Ascendas REIT	0	0	0	0	0.00

Gladstone Commercial currently has a consensus target price of $12.83, indicating a potential upside of 2.67%. Given Gladstone Commercial’s stronger consensus rating and higher probable upside, research analysts plainly believe Gladstone Commercial is more favorable than CapitaLand Ascendas REIT.

Summary

Gladstone Commercial beats CapitaLand Ascendas REIT on 10 of the 11 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 CapitaLand Ascendas REIT

CapitaLand Ascendas REIT (CLAR) is Singapore’s first and largest listed business space and industrial real estate investment trust. It was listed on the Singapore Exchange Securities Trading Limited (SGX-ST) in November 2002. CLAR has since grown to be a global REIT anchored in Singapore, with a strong focus on tech and logistics properties in developed markets. As at 31 December 2023, its investment properties under management stood at S$16.9 billion. It owns a total of 232 properties across three segments, namely Business Space and Life Sciences; Logistics; and Industrial and Data Centres. These properties are in the developed markets of Singapore, the United States, Australia, and the United Kingdom/Europe. These properties house a tenant base of approximately 1,790 international and local companies from a wide range of industries and activities, including data centres, information technology, engineering, logistics & supply chain management, biomedical sciences, financial services (backroom office support), electronics, government and other manufacturing and services industries. Major tenants include Singtel, DSO National Laboratories, SEA Group, Stripe, Entserve UK, DBS, Seagate, Citibank, Pinterest, and Equinix. CLAR is listed in several indices. These include the FTSE Straits Times Index, the Morgan Stanley Capital International, Inc (MSCI) Index, the European Public Real Estate Association/National Association of Real Estate Investment Trusts (EPRA/NAREIT) Global Real Estate Index and Global Property Research (GPR) Asia 250. CLAR has an issuer rating of A3′ by Moody’s Investors Service. CLAR is managed by CapitaLand Ascendas REIT Management Limited, a wholly owned subsidiary of CapitaLand Investment Limited, a leading global real estate investment manager with a strong Asia foothold.