Comparing Dream Industrial Real Estate Investment Trust (OTCMKTS:DREUF) and Modiv Industrial (NYSE:MDV)

Modiv Industrial (NYSE:MDV) and Dream Industrial Real Estate Investment Trust (OTCMKTS:DREUF) are both real estate companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, profitability, analyst recommendations, institutional ownership, earnings, dividends and risk.

Analyst Recommendations

This is a breakdown of current recommendations for Modiv Industrial and Dream Industrial Real Estate Investment Trust, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Modiv Industrial	0	6	0	0	2.00
Dream Industrial Real Estate Investment Trust	0	0	5	0	3.00

Modiv Industrial presently has a consensus price target of $18.50, suggesting a potential upside of 2.49%. Given Modiv Industrial’s higher probable upside, equities research analysts plainly believe Modiv Industrial is more favorable than Dream Industrial Real Estate Investment Trust.

Dividends

Modiv Industrial pays an annual dividend of $1.20 per share and has a dividend yield of 6.6%. Dream Industrial Real Estate Investment Trust pays an annual dividend of $0.70 per share and has a dividend yield of 7.0%. Modiv Industrial pays out 333.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Dream Industrial Real Estate Investment Trust pays out 68.7% of its earnings in the form of a dividend. Modiv Industrial has raised its dividend for 3 consecutive years. Dream Industrial Real Estate Investment Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.

Institutional and Insider Ownership

8.2% of Modiv Industrial shares are owned by institutional investors. Comparatively, 46.3% of Dream Industrial Real Estate Investment Trust shares are owned by institutional investors. 2.8% of Modiv Industrial shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Modiv Industrial and Dream Industrial Real Estate Investment Trust”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Modiv Industrial	$46.16 million	4.04	$1.07 million	$0.36	50.14
Dream Industrial Real Estate Investment Trust	N/A	N/A	N/A	$1.02	9.88

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

Profitability

This table compares Modiv Industrial and Dream Industrial Real Estate Investment Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Modiv Industrial	16.35%	3.75%	1.55%
Dream Industrial Real Estate Investment Trust	N/A	N/A	N/A

Summary

Modiv Industrial beats Dream Industrial Real Estate Investment Trust on 8 of the 14 factors compared between the two stocks.

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.

About Dream Industrial Real Estate Investment Trust

Dream Industrial REIT is an unincorporated, open-ended real estate investment trust. As at December 31, 2023, we own, manage and operate a global portfolio of well-located, diversified industrial properties comprising 327 assets totalling approximately 71.4 million square feet of GLA in key markets across Canada, Europe and the U.S. Our goal is to deliver strong total returns to our unitholders through secure distributions as well as growth in net asset value and cash flow per unit underpinned by our high-quality portfolio and an investment grade balance sheet. Our REIT Units are listed on the Toronto Stock Exchange (TSX) under the trading symbol DIR.UN.