Analyzing Medalist Diversified REIT (NASDAQ:MDRR) and Kimco Realty (NYSE:KIM)

Kimco Realty (NYSE:KIM) and Medalist Diversified REIT (NASDAQ:MDRR) are both finance companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, valuation, profitability, earnings, dividends, analyst recommendations and institutional ownership.

Earnings & Valuation

This table compares Kimco Realty and Medalist Diversified REIT”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kimco Realty	$1.78 billion	8.26	$654.27 million	$0.55	39.72
Medalist Diversified REIT	$10.27 million	1.43	-$4.57 million	($0.22)	-59.55

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

Analyst Ratings

This is a breakdown of current recommendations for Kimco Realty and Medalist Diversified REIT, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kimco Realty	0	10	4	2	2.50
Medalist Diversified REIT	0	0	0	0	0.00

Kimco Realty presently has a consensus target price of $24.97, indicating a potential upside of 14.28%. Given Kimco Realty’s stronger consensus rating and higher probable upside, analysts clearly believe Kimco Realty is more favorable than Medalist Diversified REIT.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Kimco Realty	19.58%	3.68%	1.99%
Medalist Diversified REIT	-2.18%	-18.35%	-3.87%

Dividends

Kimco Realty pays an annual dividend of $1.00 per share and has a dividend yield of 4.6%. Medalist Diversified REIT pays an annual dividend of $0.26 per share and has a dividend yield of 2.0%. Kimco Realty pays out 181.8% 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 pays out -118.2% of its earnings in the form of a dividend.

Risk & Volatility

Kimco Realty has a beta of 1.5, indicating that its stock price is 50% more volatile than the S&P 500. Comparatively, Medalist Diversified REIT has a beta of 0.72, indicating that its stock price is 28% less volatile than the S&P 500.

Insider & Institutional Ownership

89.3% of Kimco Realty shares are held by institutional investors. Comparatively, 17.4% of Medalist Diversified REIT shares are held by institutional investors. 2.2% of Kimco Realty shares are held by insiders. Comparatively, 56.1% of Medalist Diversified REIT shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Kimco Realty beats Medalist Diversified REIT on 15 of the 17 factors compared between the two stocks.

About Kimco Realty

Kimco Realty Corp. is a real estate investment trust (REIT) headquartered in New Hyde Park, N.Y., that is one of North America’s largest publicly traded owners and operators of open-air shopping centers. As of December 31, 2018, the company owned interests in 437 U.S. shopping centers comprising 76 million square feet of leasable space primarily concentrated in the top major metropolitan markets.

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.