Modiv Industrial (NYSE:MDV – Get Free Report) and Pebblebrook Hotel Trust (NYSE:PEB – Get Free Report) are both small-cap finance companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, valuation, institutional ownership, risk, profitability, analyst recommendations and dividends.
Institutional & Insider Ownership
8.2% of Modiv Industrial shares are held by institutional investors. 7.4% of Modiv Industrial shares are held by insiders. Comparatively, 2.4% of Pebblebrook Hotel Trust shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Analyst Recommendations
This is a summary of current ratings and price targets for Modiv Industrial and Pebblebrook Hotel Trust, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Modiv Industrial | 0 | 0 | 1 | 0 | 3.00 |
| Pebblebrook Hotel Trust | 1 | 3 | 2 | 0 | 2.17 |
Earnings & Valuation
This table compares Modiv Industrial and Pebblebrook Hotel Trust”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Modiv Industrial | $46.94 million | 3.03 | -$6.61 million | ($0.11) | -133.78 |
| Pebblebrook Hotel Trust | $1.42 billion | 1.05 | -$78.02 million | ($0.29) | -42.81 |
Modiv Industrial has higher earnings, but lower revenue than Pebblebrook Hotel Trust. Modiv Industrial is trading at a lower price-to-earnings ratio than Pebblebrook Hotel Trust, indicating that it is currently the more affordable of the two stocks.
Dividends
Modiv Industrial pays an annual dividend of $1.17 per share and has a dividend yield of 8.0%. Pebblebrook Hotel Trust pays an annual dividend of $0.04 per share and has a dividend yield of 0.3%. Modiv Industrial pays out -1,063.6% of its earnings in the form of a dividend. Pebblebrook Hotel Trust pays out -13.8% 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 is clearly the better dividend stock, given its higher yield and lower payout ratio.
Volatility and Risk
Modiv Industrial has a beta of -0.21, meaning that its stock price is 121% less volatile than the S&P 500. Comparatively, Pebblebrook Hotel Trust has a beta of 1.85, meaning that its stock price is 85% more volatile than the S&P 500.
Profitability
This table compares Modiv Industrial and Pebblebrook Hotel Trust’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Modiv Industrial | 6.72% | 1.42% | 0.61% |
| Pebblebrook Hotel Trust | 0.25% | 0.13% | 0.06% |
Summary
Modiv Industrial beats Pebblebrook Hotel Trust on 12 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 Pebblebrook Hotel Trust
Pebblebrook Hotel Trust (NYSE: PEB) is a publicly traded real estate investment trust ("REIT") and the largest owner of urban and resort lifestyle hotels and resorts in the United States. The Company owns 47 hotels and resorts, totaling approximately 12,200 guest rooms across 13 urban and resort markets.
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