Modiv Industrial (NYSE:MDV – Get Free Report) and One Liberty Properties (NYSE:OLP – Get Free Report) are both small-cap real estate companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, profitability, dividends, risk, valuation, earnings and institutional ownership.
Profitability
This table compares Modiv Industrial and One Liberty Properties’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Modiv Industrial | 16.35% | 3.75% | 1.55% |
| One Liberty Properties | 33.51% | 11.52% | 4.06% |
Dividends
Modiv Industrial pays an annual dividend of $1.20 per share and has a dividend yield of 6.6%. One Liberty Properties pays an annual dividend of $1.80 per share and has a dividend yield of 7.5%. 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. One Liberty Properties pays out 113.2% 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 increased its dividend for 3 consecutive years. One Liberty Properties is clearly the better dividend stock, given its higher yield and lower payout ratio.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Modiv Industrial | 0 | 6 | 0 | 0 | 2.00 |
| One Liberty Properties | 1 | 0 | 1 | 1 | 2.67 |
Modiv Industrial presently has a consensus target price of $18.50, suggesting a potential upside of 2.49%. One Liberty Properties has a consensus target price of $28.50, suggesting a potential upside of 18.11%. Given One Liberty Properties’ stronger consensus rating and higher probable upside, analysts clearly believe One Liberty Properties is more favorable than Modiv Industrial.
Risk & Volatility
Modiv Industrial has a beta of -0.07, meaning that its stock price is 107% less volatile than the S&P 500. Comparatively, One Liberty Properties has a beta of 0.87, meaning that its stock price is 13% less volatile than the S&P 500.
Insider and Institutional Ownership
8.2% of Modiv Industrial shares are held by institutional investors. Comparatively, 36.2% of One Liberty Properties shares are held by institutional investors. 2.8% of Modiv Industrial shares are held by insiders. Comparatively, 26.2% of One Liberty Properties shares are held by 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.
Valuation and Earnings
This table compares Modiv Industrial and One Liberty Properties”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Modiv Industrial | $46.16 million | 4.04 | $1.07 million | $0.36 | 50.14 |
| One Liberty Properties | $97.23 million | 5.44 | $25.47 million | $1.59 | 15.18 |
One Liberty Properties has higher revenue and earnings than Modiv Industrial. One Liberty Properties is trading at a lower price-to-earnings ratio than Modiv Industrial, indicating that it is currently the more affordable of the two stocks.
Summary
One Liberty Properties beats Modiv Industrial on 16 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 One Liberty Properties
One Liberty Properties, Inc. is a real estate investment trust, which engages in acquisition, ownership, and management of the geographically diversified portfolio consisting primarily of industrial, retail, restaurant, health and fitness, and theater properties, many of which are subject to long-term leases. The properties in the firm’s portfolio include net leases, long-term lease, and scheduled rent increases. The company was founded in December 1982 and is headquartered in Great Neck, NY.
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