Head-To-Head Contrast: Invitation Home (NYSE:INVH) versus Modiv Industrial (NYSE:MDV)

Invitation Home (NYSE:INVH) and Modiv Industrial (NYSE:MDV) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, earnings, dividends, risk, institutional ownership, profitability and valuation.

Earnings & Valuation

This table compares Invitation Home and Modiv Industrial”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Invitation Home	$2.62 billion	6.34	$453.92 million	$0.95	28.49
Modiv Industrial	$46.76 million	3.24	$6.02 million	($0.26)	-56.72

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

Dividends

Invitation Home pays an annual dividend of $1.16 per share and has a dividend yield of 4.3%. Modiv Industrial pays an annual dividend of $1.17 per share and has a dividend yield of 7.9%. Invitation Home pays out 122.1% 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. Invitation Home has increased its dividend for 1 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 longer track record of dividend growth.

Profitability

This table compares Invitation Home and Modiv Industrial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Invitation Home	21.70%	6.03%	3.14%
Modiv Industrial	3.00%	0.67%	0.28%

Risk and Volatility

Invitation Home has a beta of 0.83, indicating that its stock price is 17% less volatile than the S&P 500. Comparatively, Modiv Industrial has a beta of -0.32, indicating that its stock price is 132% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Invitation Home and Modiv Industrial, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Invitation Home	0	9	8	0	2.47
Modiv Industrial	0	1	0	1	3.00

Invitation Home presently has a consensus target price of $34.59, indicating a potential upside of 27.79%. Modiv Industrial has a consensus target price of $18.00, indicating a potential upside of 22.05%. Given Invitation Home’s higher possible upside, analysts plainly believe Invitation Home is more favorable than Modiv Industrial.

Institutional & Insider Ownership

96.8% of Invitation Home shares are held by institutional investors. Comparatively, 8.2% of Modiv Industrial shares are held by institutional investors. 0.3% of Invitation Home shares are held by insiders. Comparatively, 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.

Summary

Invitation Home beats Modiv Industrial on 12 of the 18 factors compared between the two stocks.

About Invitation Home

Invitation Homes, an S&P 500 company, is the nation's premier single-family home leasing and management company, meeting changing lifestyle demands by providing access to high-quality, updated homes with valued features such as close proximity to jobs and access to good schools. The company's mission, Together with you, we make a house a home, reflects its commitment to providing homes where individuals and families can thrive and high-touch service that continuously enhances residents' living experiences.

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.