Gladstone Land (NASDAQ:LANDM – Get Free Report) and Weyerhaeuser (NYSE:WY – Get Free Report) are both real estate companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, risk, institutional ownership, dividends, profitability, valuation and analyst recommendations.
This table compares Gladstone Land and Weyerhaeuser’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Gladstone Land pays an annual dividend of $1.25 per share and has a dividend yield of 5.3%. Weyerhaeuser pays an annual dividend of $0.76 per share and has a dividend yield of 2.4%. Weyerhaeuser pays out 87.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Weyerhaeuser has raised its dividend for 2 consecutive years.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Weyerhaeuser has a consensus price target of $38.29, indicating a potential upside of 20.62%. Given Weyerhaeuser’s higher probable upside, analysts clearly believe Weyerhaeuser is more favorable than Gladstone Land.
Valuation and Earnings
This table compares Gladstone Land and Weyerhaeuser’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Gladstone Land||$90.74 million||N/A||N/A||N/A||N/A|
|Weyerhaeuser||$10.18 billion||2.28||$1.88 billion||$0.87||36.48|
Weyerhaeuser has higher revenue and earnings than Gladstone Land.
Institutional and Insider Ownership
79.5% of Weyerhaeuser shares are held by institutional investors. 0.3% of Weyerhaeuser shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Weyerhaeuser beats Gladstone Land on 10 of the 12 factors compared between the two stocks.
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 126 consecutive monthly cash distributions on its common stock since its initial public offering in January 2013. The Company has increased its common distributions 31 times over the prior 34 quarters, and the current per-share distribution on its common stock is $0.0462 per month, or $0.5544 per year.
Weyerhaeuser Company, one of the world's largest private owners of timberlands, began operations in 1900. We own or control approximately 11 million acres of timberlands in the U.S. and manage additional timberlands under long-term licenses in Canada. We manage these timberlands on a sustainable basis in compliance with internationally recognized forestry standards. We are also one of the largest manufacturers of wood products in North America. Our company is a real estate investment trust. In 2022, we generated $10.2 billion in net sales and employed approximately 9,200 people who serve customers worldwide. Our common stock trades on the New York Stock Exchange under the symbol WY.
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