Mid-America Apartment Communities (NYSE:MAA) and Modiv Industrial (NYSE:MDV) Head-To-Head Survey

Mid-America Apartment Communities (NYSE:MAA) and Modiv Industrial (NYSE:MDV) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their dividends, risk, earnings, institutional ownership, profitability, valuation and analyst recommendations.

Profitability

This table compares Mid-America Apartment Communities and Modiv Industrial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Mid-America Apartment Communities	25.23%	9.10%	4.70%
Modiv Industrial	3.00%	0.67%	0.28%

Valuation and Earnings

This table compares Mid-America Apartment Communities and Modiv Industrial”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mid-America Apartment Communities	$2.20 billion	7.19	$527.54 million	$4.72	28.68
Modiv Industrial	$46.76 million	3.22	$6.02 million	($0.26)	-56.35

Mid-America Apartment Communities has higher revenue and earnings than Modiv Industrial. Modiv Industrial is trading at a lower price-to-earnings ratio than Mid-America Apartment Communities, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Mid-America Apartment Communities has a beta of 0.78, indicating that its share price is 22% less volatile than the S&P 500. Comparatively, Modiv Industrial has a beta of -0.32, indicating that its share price is 132% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Mid-America Apartment Communities and Modiv Industrial, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mid-America Apartment Communities	2	11	8	0	2.29
Modiv Industrial	0	1	0	1	3.00

Mid-America Apartment Communities currently has a consensus price target of $154.89, indicating a potential upside of 14.42%. Modiv Industrial has a consensus price target of $18.00, indicating a potential upside of 22.87%. Given Modiv Industrial’s stronger consensus rating and higher probable upside, analysts clearly believe Modiv Industrial is more favorable than Mid-America Apartment Communities.

Institutional and Insider Ownership

93.6% of Mid-America Apartment Communities shares are held by institutional investors. Comparatively, 8.2% of Modiv Industrial shares are held by institutional investors. 1.2% of Mid-America Apartment Communities shares are held by company insiders. Comparatively, 2.8% of Modiv Industrial shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Dividends

Mid-America Apartment Communities pays an annual dividend of $6.06 per share and has a dividend yield of 4.5%. Modiv Industrial pays an annual dividend of $1.17 per share and has a dividend yield of 8.0%. Mid-America Apartment Communities pays out 128.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Modiv Industrial pays out -450.0% of its earnings in the form of a dividend. Mid-America Apartment Communities has increased its dividend for 16 consecutive years and Modiv Industrial has increased its dividend for 3 consecutive years. Modiv Industrial is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Mid-America Apartment Communities beats Modiv Industrial on 12 of the 18 factors compared between the two stocks.

About Mid-America Apartment Communities

Mid-America Apartment Communities, Inc. is a real estate investment trust, which engages in the operation, acquisition, and development of apartment communities. It operates through the Same Store and Non-Same Store segments. The Same Store Communities segment represents those apartment communities that have been owned and stabilized for at least 12 months as of the first day of the calendar year. The Non-Same Store segment includes recent acquisitions, communities in development or lease-up. The company was founded in 1994 and is headquartered in Germantown, TN.

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.