Getty Realty (NYSE:GTY) versus Medalist Diversified REIT (NASDAQ:MDRR) Head to Head Review

Medalist Diversified REIT (NASDAQ:MDRR) and Getty Realty (NYSE:GTY) are both small-cap finance companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, earnings, risk, analyst recommendations, valuation, institutional ownership and profitability.

Earnings and Valuation

This table compares Medalist Diversified REIT and Getty Realty”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Medalist Diversified REIT	$10.40 million	1.59	-$2.39 million	($1.84)	-6.27
Getty Realty	$221.73 million	8.86	$79.19 million	$1.52	21.37

Getty Realty has higher revenue and earnings than Medalist Diversified REIT. Medalist Diversified REIT is trading at a lower price-to-earnings ratio than Getty Realty, indicating that it is currently the more affordable of the two stocks.

Dividends

Medalist Diversified REIT pays an annual dividend of $0.27 per share and has a dividend yield of 2.3%. Getty Realty pays an annual dividend of $1.94 per share and has a dividend yield of 6.0%. Medalist Diversified REIT pays out -14.7% of its earnings in the form of a dividend. Getty Realty pays out 127.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Medalist Diversified REIT has increased its dividend for 2 consecutive years and Getty Realty has increased its dividend for 1 consecutive years.

Profitability

This table compares Medalist Diversified REIT and Getty Realty’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Medalist Diversified REIT	-22.37%	-9.28%	-2.86%
Getty Realty	40.06%	8.76%	4.32%

Risk & Volatility

Medalist Diversified REIT has a beta of 0.59, meaning that its share price is 41% less volatile than the S&P 500. Comparatively, Getty Realty has a beta of 0.75, meaning that its share price is 25% less volatile than the S&P 500.

Institutional & Insider Ownership

17.4% of Medalist Diversified REIT shares are owned by institutional investors. Comparatively, 85.1% of Getty Realty shares are owned by institutional investors. 43.8% of Medalist Diversified REIT shares are owned by insiders. Comparatively, 7.5% of Getty Realty shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings and target prices for Medalist Diversified REIT and Getty Realty, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Medalist Diversified REIT	1	0	0	0	1.00
Getty Realty	0	4	1	0	2.20

Getty Realty has a consensus target price of $33.00, indicating a potential upside of 1.60%. Given Getty Realty’s stronger consensus rating and higher probable upside, analysts clearly believe Getty Realty is more favorable than Medalist Diversified REIT.

Summary

Getty Realty beats Medalist Diversified REIT on 14 of the 17 factors compared between the two stocks.

About Medalist Diversified REIT

Medalist Diversified REIT Inc. is a Virginia-based real estate investment trust that specializes in acquiring, owning and managing commercial real estate in the Southeast region of the U.S. The Company's strategy is to focus on commercial real estate which is expected to provide an attractive balance of risk and returns. Medalist utilizes a rigorous, consistent and replicable process for sourcing and conducting due diligence of acquisitions.

About Getty Realty

Getty Realty Corp. is a publicly traded, net lease REIT specializing in the acquisition, financing and development of convenience, automotive and other single tenant retail real estate. As of December 31, 2023, the Company’s portfolio included 1,093 freestanding properties located in 40 states across the United States and Washington, D.C.