Critical Survey: Equity LifeStyle Properties (NYSE:ELS) versus Modiv Industrial (NYSE:MDV)

Equity LifeStyle Properties (NYSE:ELSGet Free Report) and Modiv Industrial (NYSE:MDVGet Free Report) are both finance companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, earnings, dividends and risk.

Institutional and Insider Ownership

97.2% of Equity LifeStyle Properties shares are owned by institutional investors. Comparatively, 8.2% of Modiv Industrial shares are owned by institutional investors. 1.4% of Equity LifeStyle Properties shares are owned by company insiders. Comparatively, 7.4% of Modiv Industrial shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Equity LifeStyle Properties and Modiv Industrial”s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Equity LifeStyle Properties $1.53 billion 8.26 $367.01 million $1.95 33.83
Modiv Industrial $46.94 million 3.00 -$6.61 million ($0.11) -132.85

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

Volatility & Risk

Equity LifeStyle Properties has a beta of 0.79, indicating that its stock price is 21% less volatile than the S&P 500. Comparatively, Modiv Industrial has a beta of -0.21, indicating that its stock price is 121% less volatile than the S&P 500.

Profitability

This table compares Equity LifeStyle Properties and Modiv Industrial’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Equity LifeStyle Properties 24.05% 23.12% 6.51%
Modiv Industrial 6.72% 1.42% 0.61%

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Equity LifeStyle Properties and Modiv Industrial, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Equity LifeStyle Properties 0 3 6 1 2.80
Modiv Industrial 0 0 1 0 3.00

Equity LifeStyle Properties currently has a consensus target price of $73.78, indicating a potential upside of 11.85%. Modiv Industrial has a consensus target price of $18.00, indicating a potential upside of 23.18%. Given Modiv Industrial’s stronger consensus rating and higher possible upside, analysts plainly believe Modiv Industrial is more favorable than Equity LifeStyle Properties.

Dividends

Equity LifeStyle Properties pays an annual dividend of $1.91 per share and has a dividend yield of 2.9%. Modiv Industrial pays an annual dividend of $1.17 per share and has a dividend yield of 8.0%. Equity LifeStyle Properties pays out 97.9% 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. Equity LifeStyle Properties has raised its dividend for 21 consecutive years. Modiv Industrial is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Equity LifeStyle Properties beats Modiv Industrial on 13 of the 18 factors compared between the two stocks.

About Equity LifeStyle Properties

(Get Free Report)

Equity LifeStyle Properties, Inc. is a real estate investment trust, which engages in the ownership and operation of lifestyle-oriented properties consisting primarily of manufactured home, and recreational vehicle communities. It operates through the following segments: Property Operations and Home Sales and Rentals Operations. The Property Operations segment owns and operates land lease properties. The Home Sales and Rentals Operations segment purchases, sells, and leases homes. The company was founded by James M. Hankins in December 1992 and is headquartered in Chicago, IL.

About Modiv Industrial

(Get Free Report)

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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