Dream Industrial Real Estate Investment Trust (OTCMKTS:DREUF – Get Free Report) and Modiv Industrial (NYSE:MDV – Get Free Report) are both real estate companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, earnings, profitability, risk, analyst recommendations, valuation and dividends.
Profitability
This table compares Dream Industrial Real Estate Investment Trust and Modiv Industrial’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Dream Industrial Real Estate Investment Trust | N/A | N/A | N/A |
| Modiv Industrial | 16.35% | 3.75% | 1.55% |
Dividends
Dream Industrial Real Estate Investment Trust pays an annual dividend of $0.70 per share and has a dividend yield of 7.0%. Modiv Industrial pays an annual dividend of $1.20 per share and has a dividend yield of 6.6%. Dream Industrial Real Estate Investment Trust pays out 68.7% of its earnings in the form of a dividend. Modiv Industrial pays out 333.3% 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. Dream Industrial Real Estate Investment Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Dream Industrial Real Estate Investment Trust | 0 | 0 | 5 | 0 | 3.00 |
| Modiv Industrial | 0 | 6 | 0 | 0 | 2.00 |
Modiv Industrial has a consensus price target of $18.50, indicating a potential upside of 2.49%. Given Modiv Industrial’s higher possible upside, analysts plainly believe Modiv Industrial is more favorable than Dream Industrial Real Estate Investment Trust.
Valuation & Earnings
This table compares Dream Industrial Real Estate Investment Trust and Modiv Industrial”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Dream Industrial Real Estate Investment Trust | N/A | N/A | N/A | $1.02 | 9.88 |
| Modiv Industrial | $46.16 million | 4.04 | $1.07 million | $0.36 | 50.14 |
Modiv Industrial has higher revenue and earnings than Dream Industrial Real Estate Investment Trust. Dream Industrial Real Estate Investment Trust is trading at a lower price-to-earnings ratio than Modiv Industrial, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
46.3% of Dream Industrial Real Estate Investment Trust shares are owned by institutional investors. Comparatively, 8.2% of Modiv Industrial shares are owned by institutional investors. 2.8% of Modiv Industrial shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Summary
Modiv Industrial beats Dream Industrial Real Estate Investment Trust on 8 of the 14 factors compared between the two stocks.
About Dream Industrial Real Estate Investment Trust
Dream Industrial REIT is an unincorporated, open-ended real estate investment trust. As at December 31, 2023, we own, manage and operate a global portfolio of well-located, diversified industrial properties comprising 327 assets totalling approximately 71.4 million square feet of GLA in key markets across Canada, Europe and the U.S. Our goal is to deliver strong total returns to our unitholders through secure distributions as well as growth in net asset value and cash flow per unit underpinned by our high-quality portfolio and an investment grade balance sheet. Our REIT Units are listed on the Toronto Stock Exchange (TSX) under the trading symbol DIR.UN.
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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