Broadstone Net Lease (NYSE:BNL – Get Free Report) and Modiv Industrial (NYSE:MDV – Get Free Report) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their valuation, institutional ownership, analyst recommendations, dividends, earnings, profitability and risk.
Earnings and Valuation
This table compares Broadstone Net Lease and Modiv Industrial”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Broadstone Net Lease | $431.80 million | 8.21 | $162.44 million | $0.52 | 36.05 |
| Modiv Industrial | $47.01 million | 3.17 | $6.02 million | ($0.44) | -33.33 |
Analyst Recommendations
This is a summary of current ratings and target prices for Broadstone Net Lease and Modiv Industrial, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Broadstone Net Lease | 0 | 3 | 7 | 1 | 2.82 |
| Modiv Industrial | 0 | 1 | 0 | 1 | 3.00 |
Broadstone Net Lease currently has a consensus price target of $19.89, indicating a potential upside of 6.10%. Modiv Industrial has a consensus price target of $18.00, indicating a potential upside of 22.74%. Given Modiv Industrial’s stronger consensus rating and higher probable upside, analysts clearly believe Modiv Industrial is more favorable than Broadstone Net Lease.
Volatility and Risk
Broadstone Net Lease has a beta of 1, indicating that its share price has a similar volatility profile to the S&P 500.Comparatively, Modiv Industrial has a beta of -0.32, indicating that its share price is 132% less volatile than the S&P 500.
Profitability
This table compares Broadstone Net Lease and Modiv Industrial’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Broadstone Net Lease | 22.37% | 3.19% | 1.88% |
| Modiv Industrial | -0.48% | -0.11% | -0.04% |
Insider & Institutional Ownership
89.1% of Broadstone Net Lease shares are held by institutional investors. Comparatively, 8.2% of Modiv Industrial shares are held by institutional investors. 0.6% of Broadstone Net Lease shares are held by company insiders. Comparatively, 2.8% of Modiv Industrial shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Dividends
Broadstone Net Lease pays an annual dividend of $1.16 per share and has a dividend yield of 6.2%. Modiv Industrial pays an annual dividend of $1.17 per share and has a dividend yield of 8.0%. Broadstone Net Lease pays out 223.1% 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 pays out -265.9% of its earnings in the form of a dividend. Broadstone Net Lease has raised its dividend for 4 consecutive years and Modiv Industrial has raised its dividend for 3 consecutive years. Modiv Industrial is clearly the better dividend stock, given its higher yield and lower payout ratio.
Summary
Broadstone Net Lease beats Modiv Industrial on 12 of the 17 factors compared between the two stocks.
About Broadstone Net Lease
Broadstone Net Lease, Inc. (the Corporation) is a Maryland corporation formed on October 18, 2007, that elected to be taxed as a real estate investment trust (REIT) commencing with the taxable year ended December 31, 2008. Broadstone Net Lease, LLC (the Corporation’s operating company, or the OP), is the entity through which the Corporation conducts its business and owns (either directly or through subsidiaries) all of the Corporation’s properties. The Corporation is the sole managing member of the OP. The membership units not owned by the Corporation are referred to as OP Units or non-controlling interests. As the Corporation conducts substantially all of its operations through the OP, it is structured as what is referred to as an umbrella partnership real estate investment trust (UPREIT). The Corporation’s common stock is listed on the New York Stock Exchange under the symbol BNL.
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.
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