Modiv Industrial (NYSE:MDV – Get Free Report) and NexPoint Residential Trust (NYSE:NXRT – Get Free Report) are both small-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, valuation, risk, analyst recommendations, institutional ownership, earnings and profitability.
Earnings & Valuation
This table compares Modiv Industrial and NexPoint Residential Trust”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Modiv Industrial | $46.76 million | 3.18 | $6.02 million | ($0.26) | -56.25 |
| NexPoint Residential Trust | $259.70 million | 3.02 | $1.11 million | ($1.92) | -16.08 |
Profitability
This table compares Modiv Industrial and NexPoint Residential Trust’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Modiv Industrial | 3.00% | 0.67% | 0.28% |
| NexPoint Residential Trust | -19.23% | -13.32% | -2.60% |
Insider and Institutional Ownership
8.2% of Modiv Industrial shares are held by institutional investors. Comparatively, 76.6% of NexPoint Residential Trust shares are held by institutional investors. 2.8% of Modiv Industrial shares are held by company insiders. Comparatively, 15.4% of NexPoint Residential Trust shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Volatility & Risk
Modiv Industrial has a beta of -0.32, indicating that its stock price is 132% less volatile than the S&P 500. Comparatively, NexPoint Residential Trust has a beta of 1.09, indicating that its stock price is 9% more volatile than the S&P 500.
Dividends
Modiv Industrial pays an annual dividend of $1.17 per share and has a dividend yield of 8.0%. NexPoint Residential Trust pays an annual dividend of $2.04 per share and has a dividend yield of 6.6%. Modiv Industrial pays out -450.0% of its earnings in the form of a dividend. NexPoint Residential Trust pays out -106.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Modiv Industrial has raised its dividend for 3 consecutive years and NexPoint Residential Trust has raised its dividend for 3 consecutive years. Modiv Industrial is clearly the better dividend stock, given its higher yield and lower payout ratio.
Analyst Ratings
This is a breakdown of recent ratings and price targets for Modiv Industrial and NexPoint Residential Trust, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Modiv Industrial | 0 | 1 | 0 | 1 | 3.00 |
| NexPoint Residential Trust | 1 | 7 | 0 | 0 | 1.88 |
Modiv Industrial presently has a consensus price target of $18.00, indicating a potential upside of 23.07%. NexPoint Residential Trust has a consensus price target of $40.13, indicating a potential upside of 29.96%. Given NexPoint Residential Trust’s higher probable upside, analysts clearly believe NexPoint Residential Trust is more favorable than Modiv Industrial.
Summary
Modiv Industrial beats NexPoint Residential Trust on 10 of the 16 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 NexPoint Residential Trust
NexPoint Residential Trust is a publicly traded REIT, with its shares listed on the New York Stock Exchange under the symbol “NXRT,” primarily focused on acquiring, owning and operating well-located middle-income multifamily properties with “value-add” potential in large cities and suburban submarkets of large cities, primarily in the Southeastern and Southwestern United States. NXRT is externally advised by NexPoint Real Estate Advisors, L.P., an affiliate of NexPoint Advisors, L.P., an SEC-registered investment advisor, which has extensive real estate experience.
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