Critical Analysis: CapitaLand Ascendas REIT (OTCMKTS:ACDSF) versus Modiv Industrial (NYSE:MDV)

CapitaLand Ascendas REIT (OTCMKTS:ACDSF) and Modiv Industrial (NYSE:MDV) are both real estate companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, institutional ownership, earnings, risk, dividends, valuation and analyst recommendations.

Institutional & Insider Ownership

8.2% of Modiv Industrial shares are held by institutional investors. 2.8% of Modiv Industrial shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares CapitaLand Ascendas REIT and Modiv Industrial”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CapitaLand Ascendas REIT	N/A	N/A	N/A	N/A	N/A
Modiv Industrial	$46.16 million	4.04	$1.07 million	$0.36	50.14

Modiv Industrial has higher revenue and earnings than CapitaLand Ascendas REIT.

Profitability

This table compares CapitaLand Ascendas REIT and Modiv Industrial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CapitaLand Ascendas REIT	N/A	N/A	N/A
Modiv Industrial	16.35%	3.75%	1.55%

Analyst Recommendations

This is a summary of recent recommendations for CapitaLand Ascendas REIT and Modiv Industrial, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CapitaLand Ascendas REIT	0	0	0	0	0.00
Modiv Industrial	0	6	0	0	2.00

Modiv Industrial has a consensus price target of $18.50, indicating a potential upside of 2.49%. Given Modiv Industrial’s stronger consensus rating and higher probable upside, analysts plainly believe Modiv Industrial is more favorable than CapitaLand Ascendas REIT.

Summary

Modiv Industrial beats CapitaLand Ascendas REIT on 8 of the 8 factors compared between the two stocks.

About CapitaLand Ascendas REIT

CapitaLand Ascendas REIT (CLAR) is Singapore’s first and largest listed business space and industrial real estate investment trust. It was listed on the Singapore Exchange Securities Trading Limited (SGX-ST) in November 2002. CLAR has since grown to be a global REIT anchored in Singapore, with a strong focus on tech and logistics properties in developed markets. As at 31 December 2023, its investment properties under management stood at S$16.9 billion. It owns a total of 232 properties across three segments, namely Business Space and Life Sciences; Logistics; and Industrial and Data Centres. These properties are in the developed markets of Singapore, the United States, Australia, and the United Kingdom/Europe. These properties house a tenant base of approximately 1,790 international and local companies from a wide range of industries and activities, including data centres, information technology, engineering, logistics & supply chain management, biomedical sciences, financial services (backroom office support), electronics, government and other manufacturing and services industries. Major tenants include Singtel, DSO National Laboratories, SEA Group, Stripe, Entserve UK, DBS, Seagate, Citibank, Pinterest, and Equinix. CLAR is listed in several indices. These include the FTSE Straits Times Index, the Morgan Stanley Capital International, Inc (MSCI) Index, the European Public Real Estate Association/National Association of Real Estate Investment Trusts (EPRA/NAREIT) Global Real Estate Index and Global Property Research (GPR) Asia 250. CLAR has an issuer rating of A3′ by Moody’s Investors Service. CLAR is managed by CapitaLand Ascendas REIT Management Limited, a wholly owned subsidiary of CapitaLand Investment Limited, a leading global real estate investment manager with a strong Asia foothold.

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.