One Liberty Properties (NYSE:OLP – Get Free Report) and Modiv Industrial (NYSE:MDV – Get Free Report) are both small-cap real estate companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, profitability, valuation, dividends and risk.
Dividends
One Liberty Properties pays an annual dividend of $1.80 per share and has a dividend yield of 7.5%. Modiv Industrial pays an annual dividend of $1.20 per share and has a dividend yield of 6.6%. One Liberty Properties pays out 113.2% 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 333.3% 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 has raised its dividend for 3 consecutive years. One Liberty Properties is clearly the better dividend stock, given its higher yield and lower payout ratio.
Profitability
This table compares One Liberty Properties and Modiv Industrial’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| One Liberty Properties | 33.51% | 11.52% | 4.06% |
| Modiv Industrial | 16.35% | 3.75% | 1.55% |
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| One Liberty Properties | $103.80 million | 5.05 | $25.47 million | $1.59 | 15.06 |
| Modiv Industrial | $46.16 million | 4.04 | $1.07 million | $0.36 | 50.14 |
One Liberty Properties has higher revenue and earnings than Modiv Industrial. One Liberty Properties is trading at a lower price-to-earnings ratio than Modiv Industrial, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
36.2% of One Liberty Properties shares are owned by institutional investors. Comparatively, 8.2% of Modiv Industrial shares are owned by institutional investors. 26.2% of One Liberty Properties shares are owned by company insiders. Comparatively, 2.8% of Modiv Industrial shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Analyst Recommendations
This is a summary of current ratings and target prices for One Liberty Properties and Modiv Industrial, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| One Liberty Properties | 1 | 0 | 1 | 1 | 2.67 |
| Modiv Industrial | 0 | 6 | 0 | 0 | 2.00 |
One Liberty Properties currently has a consensus target price of $28.50, suggesting a potential upside of 19.00%. Modiv Industrial has a consensus target price of $18.50, suggesting a potential upside of 2.49%. Given One Liberty Properties’ stronger consensus rating and higher possible upside, research analysts clearly believe One Liberty Properties is more favorable than Modiv Industrial.
Volatility & Risk
One Liberty Properties has a beta of 0.86, suggesting that its stock price is 14% less volatile than the S&P 500. Comparatively, Modiv Industrial has a beta of -0.07, suggesting that its stock price is 107% less volatile than the S&P 500.
Summary
One Liberty Properties beats Modiv Industrial on 16 of the 18 factors compared between the two stocks.
About One Liberty Properties
One Liberty Properties, Inc. is a real estate investment trust, which engages in acquisition, ownership, and management of the geographically diversified portfolio consisting primarily of industrial, retail, restaurant, health and fitness, and theater properties, many of which are subject to long-term leases. The properties in the firm’s portfolio include net leases, long-term lease, and scheduled rent increases. The company was founded in December 1982 and is headquartered in Great Neck, NY.
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.
Receive News & Ratings for One Liberty Properties Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for One Liberty Properties and related companies with MarketBeat.com's FREE daily email newsletter.
