Financial Comparison: Dream Industrial Real Estate Investment Trust (OTCMKTS:DREUF) vs. Modiv Industrial (NYSE:MDV)

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

Institutional & Insider Ownership

46.3% of Dream Industrial Real Estate Investment Trust shares are held by institutional investors. Comparatively, 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 large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Dividends

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 an annual dividend of $1.20 per share and has a dividend yield of 6.6%. Dream Industrial Real Estate Investment Trust pays out 68.7% of its earnings in the form of a dividend. Modiv Industrial pays out -292.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Modiv Industrial has increased its dividend for 3 consecutive years.

Analyst Ratings

This is a summary of recent ratings and price targets for Dream Industrial Real Estate Investment Trust and Modiv Industrial, as reported by MarketBeat.

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

Modiv Industrial has a consensus target price of $18.50, suggesting a potential upside of 1.87%. Given Modiv Industrial’s higher possible upside, analysts clearly believe Modiv Industrial is more favorable than Dream Industrial Real Estate Investment Trust.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Dream Industrial Real Estate Investment Trust	N/A	N/A	N/A	$1.02	9.78
Modiv Industrial	$46.39 million	4.04	$1.07 million	($0.41)	-44.29

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Dream Industrial Real Estate Investment Trust	N/A	N/A	N/A
Modiv Industrial	0.33%	0.07%	0.03%

Summary

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

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.

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.