Monmouth Real Estate Investment Corporation (NYSE: MNR) and Rexford Industrial Realty (NYSE:REXR) are both small-cap finance companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, profitabiliy, earnings, risk and analyst recommendations.

Profitability

This table compares Monmouth Real Estate Investment Corporation and Rexford Industrial Realty’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Monmouth Real Estate Investment Corporation 34.30% 8.40% 2.91%
Rexford Industrial Realty 21.30% 3.06% 1.78%

Earnings & Valuation

This table compares Monmouth Real Estate Investment Corporation and Rexford Industrial Realty’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Monmouth Real Estate Investment Corporation $104.18 million 10.52 $79.20 million $0.32 47.19
Rexford Industrial Realty $133.54 million 13.74 $78.76 million $0.38 72.77

Monmouth Real Estate Investment Corporation has higher revenue, but lower earnings than Rexford Industrial Realty. Monmouth Real Estate Investment Corporation is trading at a lower price-to-earnings ratio than Rexford Industrial Realty, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

59.7% of Monmouth Real Estate Investment Corporation shares are held by institutional investors. 5.3% of Monmouth Real Estate Investment Corporation shares are held by insiders. Comparatively, 2.1% of Rexford Industrial Realty shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Volatility and Risk

Monmouth Real Estate Investment Corporation has a beta of 0.59, meaning that its share price is 41% less volatile than the S&P 500. Comparatively, Rexford Industrial Realty has a beta of 0.78, meaning that its share price is 22% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations for Monmouth Real Estate Investment Corporation and Rexford Industrial Realty, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Monmouth Real Estate Investment Corporation 0 1 4 0 2.80
Rexford Industrial Realty 0 2 1 0 2.33

Monmouth Real Estate Investment Corporation presently has a consensus price target of $15.60, indicating a potential upside of 3.31%. Rexford Industrial Realty has a consensus price target of $22.67, indicating a potential downside of 18.02%. Given Monmouth Real Estate Investment Corporation’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Monmouth Real Estate Investment Corporation is more favorable than Rexford Industrial Realty.

Dividends

Monmouth Real Estate Investment Corporation pays an annual dividend of $0.64 per share and has a dividend yield of 4.2%. Rexford Industrial Realty pays an annual dividend of $0.58 per share and has a dividend yield of 2.1%. Monmouth Real Estate Investment Corporation pays out 200.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Rexford Industrial Realty pays out 152.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Rexford Industrial Realty has increased its dividend for 2 consecutive years.

Summary

Monmouth Real Estate Investment Corporation beats Rexford Industrial Realty on 10 of the 17 factors compared between the two stocks.

About Monmouth Real Estate Investment Corporation

Monmouth Real Estate Investment Corporation is a real estate investment trust (REIT). The Company’s primary business is the ownership of real estate. Its investment focus is to own single tenant, industrial buildings and leased to investment-grade tenants or their subsidiaries on long-term net leases. In addition, the Company owns a portfolio of REIT investment securities. Its assets are situated near airports, transportation hubs and manufacturing plants. The Company’s featured properties include ULTA Cosmetics, Milwaukee Tool, Beam Suntory, FedEx Supply Chain Services, Coca-Cola, Best Buy, International Paper, Home Depot, FedEx Ground, Actavis, Anheuser-Busch, United Technologies, Kellogg’s, Siemens, National Oilwell and Cardinal Health. The Company’s property portfolio consists of approximately 100 properties located in over 30 states, containing a total of approximately 16.6 million rentable square feet.

About Rexford Industrial Realty

Rexford Industrial Realty, Inc. is a self-administered and self-managed full-service real estate investment trust (REIT). The Company is focused on owning, operating and acquiring industrial properties in Southern California infill markets. Rexford Industrial Realty, L.P. is the operating partnership of the Company. Through its controlling interest in Operating Partnership and its subsidiaries, the Company owns, manages, leases, acquires and develops industrial real estate located in Southern California infill markets, and from time to time, acquires or provides mortgage debt secured by industrial property. As of May 1, 2017, the Company’s consolidated portfolio consisted of 137 properties with approximately 15 million rentable square feet. In addition, the Company managed an additional 19 properties with approximately 1.2 million rentable square feet, as of May 1, 2017.

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