Analyzing Public Storage (NYSE:PSA) and Modiv Industrial (NYSE:MDV)

Public Storage (NYSE:PSA) and Modiv Industrial (NYSE:MDV) are both finance companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, risk, profitability, dividends, valuation and earnings.

Dividends

Public Storage pays an annual dividend of $12.00 per share and has a dividend yield of 4.1%. Modiv Industrial pays an annual dividend of $1.15 per share and has a dividend yield of 7.7%. Public Storage pays out 124.6% 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 -1,045.5% of its earnings in the form of a dividend. Modiv Industrial is clearly the better dividend stock, given its higher yield and lower payout ratio.

Earnings & Valuation

This table compares Public Storage 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
Public Storage	$4.68 billion	11.07	$2.15 billion	$9.63	30.72
Modiv Industrial	$47.12 million	3.06	-$6.61 million	($0.11)	-135.82

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Public Storage	40.54%	34.07%	9.60%
Modiv Industrial	6.72%	1.42%	0.61%

Volatility and Risk

Public Storage has a beta of 0.71, meaning that its share price is 29% less volatile than the S&P 500. Comparatively, Modiv Industrial has a beta of -0.24, meaning that its share price is 124% less volatile than the S&P 500.

Insider & Institutional Ownership

78.8% of Public Storage shares are owned by institutional investors. Comparatively, 8.2% of Modiv Industrial shares are owned by institutional investors. 11.0% of Public Storage 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 stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings for Public Storage and Modiv Industrial, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Public Storage	1	6	6	2	2.60
Modiv Industrial	0	0	1	0	3.00

Public Storage presently has a consensus target price of $342.07, suggesting a potential upside of 15.64%. Modiv Industrial has a consensus target price of $18.00, suggesting a potential upside of 20.48%. Given Modiv Industrial’s stronger consensus rating and higher possible upside, analysts plainly believe Modiv Industrial is more favorable than Public Storage.

Summary

Public Storage beats Modiv Industrial on 13 of the 17 factors compared between the two stocks.

About Public Storage

Public Storage, a member of the S&P 500 and FT Global 500, is a REIT that primarily acquires, develops, owns, and operates self-storage facilities. At December 31, 2023, we had: (i) interests in 3,044 self-storage facilities located in 40 states with approximately 218 million net rentable square feet in the United States and (ii) a 35% common equity interest in Shurgard Self Storage Limited (Euronext Brussels: SHUR), which owned 275 self-storage facilities located in seven Western European nations with approximately 15 million net rentable square feet operated under the Shurgard brand. Our headquarters are located in Glendale, California.

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.