Contrasting Modiv Industrial (NYSE:MDV) and UMH Properties (NYSE:UMH)

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

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for UMH Properties and Modiv Industrial, as provided 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 presently has a consensus target price of $21.17, indicating a potential upside of 13.22%. Modiv Industrial has a consensus target price of $18.00, indicating a potential upside of 14.21%. Given Modiv Industrial’s stronger consensus rating and higher possible upside, analysts clearly believe Modiv Industrial is more favorable than UMH Properties.

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 7.4%. 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.

Earnings and Valuation

This table compares UMH Properties and Modiv Industrial”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
UMH Properties	$240.55 million	6.41	$8.01 million	$0.03	623.17
Modiv Industrial	$46.76 million	3.36	-$6.61 million	$0.25	63.04

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%

Volatility and Risk

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

Institutional and Insider Ownership

75.4% of UMH Properties shares are held by institutional investors. Comparatively, 8.2% of Modiv Industrial shares are held by institutional investors. 8.6% of UMH Properties shares are held by company insiders. Comparatively, 7.4% of Modiv Industrial shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

UMH Properties beats Modiv Industrial on 11 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.