Head-To-Head Review: NewLake Capital Partners (OTCMKTS:NLCP) vs. Gladstone Land (NASDAQ:LAND)

NewLake Capital Partners (OTCMKTS:NLCP) and Gladstone Land (NASDAQ:LAND) are both real estate companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, dividends, valuation, institutional ownership, profitability and analyst recommendations.

Insider and Institutional Ownership

53.6% of Gladstone Land shares are held by institutional investors. 7.2% of Gladstone Land shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings and target prices for NewLake Capital Partners and Gladstone Land, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NewLake Capital Partners	0	0	1	0	3.00
Gladstone Land	0	2	2	0	2.50

NewLake Capital Partners currently has a consensus price target of $18.25, suggesting a potential downside of 8.43%. Gladstone Land has a consensus price target of $16.00, suggesting a potential upside of 18.52%. Given Gladstone Land’s higher probable upside, analysts plainly believe Gladstone Land is more favorable than NewLake Capital Partners.

Earnings & Valuation

This table compares NewLake Capital Partners and Gladstone Land”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NewLake Capital Partners	N/A	N/A	N/A	N/A	N/A
Gladstone Land	$89.54 million	5.40	$14.56 million	$0.06	225.00

Gladstone Land has higher revenue and earnings than NewLake Capital Partners.

Profitability

This table compares NewLake Capital Partners and Gladstone Land’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NewLake Capital Partners	N/A	N/A	N/A
Gladstone Land	19.77%	2.46%	1.29%

Summary

Gladstone Land beats NewLake Capital Partners on 8 of the 9 factors compared between the two stocks.

About NewLake Capital Partners

NewLake Capital Partners, Inc. is an internally-managed real estate investment trust that provides real estate capital to state-licensed cannabis operators through sale-leaseback transactions and third-party purchases and funding for build-to-suit projects. NewLake owns a portfolio of 31 properties comprised of 14 cultivation facilities and 17 dispensaries that are leased to single tenants on a triple-net basis.

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.