Modiv Industrial (NYSE:MDV – Get Free Report) and American Homes 4 Rent (NYSE:AMH – Get Free Report) are both finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their profitability, institutional ownership, risk, valuation, analyst recommendations, dividends and earnings.
Institutional & Insider Ownership
8.2% of Modiv Industrial shares are owned by institutional investors. Comparatively, 91.9% of American Homes 4 Rent shares are owned by institutional investors. 2.8% of Modiv Industrial shares are owned by insiders. Comparatively, 6.3% of American Homes 4 Rent shares are owned 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.
Risk and Volatility
Modiv Industrial has a beta of -0.31, meaning that its stock price is 131% less volatile than the S&P 500. Comparatively, American Homes 4 Rent has a beta of 0.72, meaning that its stock price is 28% less volatile than the S&P 500.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Modiv Industrial | 0 | 0 | 0 | 1 | 4.00 |
| American Homes 4 Rent | 0 | 6 | 8 | 0 | 2.57 |
Modiv Industrial currently has a consensus price target of $18.00, suggesting a potential upside of 19.47%. American Homes 4 Rent has a consensus price target of $41.0714, suggesting a potential upside of 17.06%. Given Modiv Industrial’s stronger consensus rating and higher probable upside, analysts clearly believe Modiv Industrial is more favorable than American Homes 4 Rent.
Profitability
This table compares Modiv Industrial and American Homes 4 Rent’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Modiv Industrial | -0.48% | -0.11% | -0.04% |
| American Homes 4 Rent | 23.72% | 5.60% | 3.29% |
Earnings & Valuation
This table compares Modiv Industrial and American Homes 4 Rent”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Modiv Industrial | $46.76 million | 3.27 | $6.02 million | ($0.44) | -34.24 |
| American Homes 4 Rent | $1.73 billion | 7.53 | $412.43 million | $1.11 | 31.61 |
American Homes 4 Rent has higher revenue and earnings than Modiv Industrial. Modiv Industrial is trading at a lower price-to-earnings ratio than American Homes 4 Rent, indicating that it is currently the more affordable of the two stocks.
Dividends
Modiv Industrial pays an annual dividend of $1.17 per share and has a dividend yield of 7.8%. American Homes 4 Rent pays an annual dividend of $1.20 per share and has a dividend yield of 3.4%. Modiv Industrial pays out -265.9% of its earnings in the form of a dividend. American Homes 4 Rent pays out 108.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Modiv Industrial has raised its dividend for 3 consecutive years and American Homes 4 Rent has raised its dividend for 5 consecutive years. Modiv Industrial is clearly the better dividend stock, given its higher yield and lower payout ratio.
Summary
American Homes 4 Rent beats Modiv Industrial on 13 of the 18 factors compared between the two stocks.
About Modiv Industrial
Modiv Industrial, Inc. is an internally managed REIT that is focused on single-tenant net-lease industrial manufacturing real estate. The Company actively acquires critical industrial manufacturing properties with long-term leases to tenants that fuel the national economy and strengthen the nation's supply chains.
About American Homes 4 Rent
American Homes 4 Rent operates as a real estate investment trust. It engages in the acquisition, renovation, leasing, and operating of single-family homes as rental properties. The company was founded by Bradley Wayne Hughes, Sr. on October 19, 2012 and is headquartered in Las Vegas, NV.
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