Analyzing Medalist Diversified REIT (NASDAQ:MDRR) & NETSTREIT (NYSE:NTST)

NETSTREIT (NYSE:NTST) and Medalist Diversified REIT (NASDAQ:MDRR) are both small-cap finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, earnings, profitability, institutional ownership, valuation and risk.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for NETSTREIT and Medalist Diversified REIT, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NETSTREIT	0	2	10	1	2.92
Medalist Diversified REIT	1	0	0	0	1.00

NETSTREIT presently has a consensus target price of $20.36, suggesting a potential upside of 11.38%. Given NETSTREIT’s stronger consensus rating and higher probable upside, equities analysts clearly believe NETSTREIT is more favorable than Medalist Diversified REIT.

Insider and Institutional Ownership

17.4% of Medalist Diversified REIT shares are held by institutional investors. 0.6% of NETSTREIT shares are held by insiders. Comparatively, 43.8% of Medalist Diversified REIT shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares NETSTREIT and Medalist Diversified REIT’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NETSTREIT	0.10%	0.01%	0.01%
Medalist Diversified REIT	-21.19%	-7.87%	-2.37%

Risk & Volatility

NETSTREIT has a beta of 0.9, suggesting that its stock price is 10% less volatile than the S&P 500. Comparatively, Medalist Diversified REIT has a beta of 0.48, suggesting that its stock price is 52% less volatile than the S&P 500.

Dividends

NETSTREIT pays an annual dividend of $0.86 per share and has a dividend yield of 4.7%. Medalist Diversified REIT pays an annual dividend of $0.27 per share and has a dividend yield of 2.1%. Medalist Diversified REIT pays out -14.9% of its earnings in the form of a dividend. NETSTREIT has raised its dividend for 1 consecutive years and Medalist Diversified REIT has raised its dividend for 2 consecutive years.

Earnings and Valuation

This table compares NETSTREIT and Medalist Diversified REIT”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NETSTREIT	$162.78 million	9.39	-$11.94 million	N/A	N/A
Medalist Diversified REIT	$9.73 million	1.44	$30,000.00	($1.81)	-6.98

Medalist Diversified REIT has lower revenue, but higher earnings than NETSTREIT.

Summary

NETSTREIT beats Medalist Diversified REIT on 11 of the 17 factors compared between the two stocks.

About NETSTREIT

NETSTREIT Corp. is an internally managed real estate investment trust (REIT) based in Dallas, Texas that specializes in acquiring single-tenant net lease retail properties nationwide. The growing portfolio consists of high-quality properties leased to e-commerce resistant tenants with healthy balance sheets. Led by a management team of seasoned commercial real estate executives, NETSTREIT’s strategy is to create the highest quality net lease retail portfolio in the country with the goal of generating consistent cash flows and dividends for its investors.

About Medalist Diversified REIT

Medalist Diversified REIT Inc. is a Virginia-based real estate investment trust that specializes in acquiring, owning and managing commercial real estate in the Southeast region of the U.S. The Company's strategy is to focus on commercial real estate which is expected to provide an attractive balance of risk and returns. Medalist utilizes a rigorous, consistent and replicable process for sourcing and conducting due diligence of acquisitions.