Modiv Industrial (NYSE:MDV) versus UMH Properties (NYSE:UMH) Critical Analysis

UMH Properties (NYSE:UMH) and Modiv Industrial (NYSE:MDV) are both small-cap finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, valuation, risk, profitability, dividends, earnings and analyst recommendations.

Institutional & Insider Ownership

75.4% of UMH Properties shares are owned by institutional investors. Comparatively, 8.2% of Modiv Industrial shares are owned by institutional investors. 8.6% of UMH 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 large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Volatility & Risk

UMH Properties has a beta of 1.29, suggesting that its stock price is 29% more volatile than the S&P 500. Comparatively, Modiv Industrial has a beta of -0.22, suggesting that its stock price is 122% less volatile than the S&P 500.

Dividends

UMH Properties pays an annual dividend of $0.86 per share and has a dividend yield of 4.6%. Modiv Industrial pays an annual dividend of $1.17 per share and has a dividend yield of 7.3%. UMH Properties pays out 2,866.7% 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 468.0% 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 is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for UMH Properties and Modiv Industrial, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
UMH Properties	0	2	2	0	2.50
Modiv Industrial	0	0	1	0	3.00

UMH Properties currently has a consensus price target of $21.17, suggesting a potential upside of 13.29%. Modiv Industrial has a consensus price target of $18.00, suggesting a potential upside of 11.84%. Given UMH Properties’ higher probable upside, equities research analysts clearly believe UMH Properties is more favorable than Modiv Industrial.

Earnings and Valuation

This table compares UMH 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
UMH Properties	$240.55 million	6.40	$8.01 million	$0.03	622.77
Modiv Industrial	$46.76 million	3.43	-$6.61 million	$0.25	64.38

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
UMH Properties	11.81%	6.06%	1.92%
Modiv Industrial	6.72%	1.42%	0.61%

Summary

UMH Properties beats Modiv Industrial on 12 of the 16 factors compared between the two stocks.

About UMH Properties

UMH Properties, Inc., which was organized in 1968, is a public equity REIT that owns and operates 135 manufactured home communities containing approximately 25,800 developed homesites. These communities are located in New Jersey, New York, Ohio, Pennsylvania, Tennessee, Indiana, Michigan, Maryland, Alabama, South Carolina and Georgia. UMH also has an ownership interest in and operates two communities in Florida, containing 363 sites, through its joint venture with Nuveen Real Estate

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.