Modiv Industrial (NYSE:MDV) & First Industrial Realty Trust (NYSE:FR) Critical Survey

First Industrial Realty Trust (NYSE:FR) and Modiv Industrial (NYSE:MDV) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, dividends, earnings, valuation, institutional ownership, profitability and analyst recommendations.

Institutional and Insider Ownership

99.8% of First Industrial Realty Trust shares are held by institutional investors. Comparatively, 8.2% of Modiv Industrial shares are held by institutional investors. 0.9% of First Industrial Realty Trust shares are held by insiders. Comparatively, 7.4% of Modiv Industrial shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares First Industrial Realty Trust and Modiv Industrial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
First Industrial Realty Trust	42.94%	10.64%	5.51%
Modiv Industrial	6.72%	1.42%	0.61%

Dividends

First Industrial Realty Trust pays an annual dividend of $1.78 per share and has a dividend yield of 3.2%. Modiv Industrial pays an annual dividend of $1.17 per share and has a dividend yield of 8.0%. First Industrial Realty Trust pays out 81.7% 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 pays out -1,063.6% of its earnings in the form of a dividend. First Industrial Realty Trust has raised its dividend for 12 consecutive years. Modiv Industrial is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for First Industrial Realty Trust and Modiv Industrial, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Industrial Realty Trust	0	7	7	0	2.50
Modiv Industrial	0	0	1	0	3.00

First Industrial Realty Trust presently has a consensus price target of $58.31, indicating a potential upside of 3.76%. Modiv Industrial has a consensus price target of $18.00, indicating a potential upside of 22.81%. Given Modiv Industrial’s stronger consensus rating and higher probable upside, analysts plainly believe Modiv Industrial is more favorable than First Industrial Realty Trust.

Risk and Volatility

First Industrial Realty Trust has a beta of 1.09, suggesting that its share price is 9% more volatile than the S&P 500. Comparatively, Modiv Industrial has a beta of -0.21, suggesting that its share price is 121% less volatile than the S&P 500.

Valuation and Earnings

This table compares First Industrial Realty Trust and Modiv Industrial”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Industrial Realty Trust	$669.64 million	11.11	$287.55 million	$2.18	25.78
Modiv Industrial	$46.94 million	3.01	-$6.61 million	($0.11)	-133.25

First Industrial Realty Trust has higher revenue and earnings than Modiv Industrial. Modiv Industrial is trading at a lower price-to-earnings ratio than First Industrial Realty Trust, indicating that it is currently the more affordable of the two stocks.

Summary

First Industrial Realty Trust beats Modiv Industrial on 12 of the 17 factors compared between the two stocks.

About First Industrial Realty Trust

First Industrial Realty Trust, Inc. (NYSE: FR) is a leading U.S.-only owner, operator, developer and acquirer of logistics properties. Through our fully integrated operating and investing platform, we provide high quality facilities and industry-leading customer service to multinational corporations and regional firms that are essential for their supply chains. Our portfolio and new investments are concentrated in 15 target MSAs with an emphasis on supply-constrained, coastally oriented markets. In total, we own and have under development approximately 68.5 million square feet of industrial space as of December 31, 2023.

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.