Head to Head Contrast: Modiv Industrial (NYSE:MDV) versus Peakstone Realty Trust (NYSE:PKST)

Peakstone Realty Trust (NYSE:PKST) and Modiv Industrial (NYSE:MDV) are both small-cap finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, dividends, institutional ownership, profitability, analyst recommendations, earnings and risk.

Dividends

Peakstone Realty Trust pays an annual dividend of $0.90 per share and has a dividend yield of 6.5%. Modiv Industrial pays an annual dividend of $1.15 per share and has a dividend yield of 7.8%. Peakstone Realty Trust pays out -5.8% of its earnings in the form of a dividend. Modiv Industrial pays out -244.7% 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 raised its dividend for 1 consecutive years. Modiv Industrial is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Valuation & Earnings

This table compares Peakstone Realty Trust and Modiv Industrial’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Peakstone Realty Trust	$254.28 million	1.96	-$550.58 million	($15.52)	-0.89
Modiv Industrial	$46.94 million	2.96	-$6.61 million	($0.47)	-31.53

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

Analyst Recommendations

This is a summary of current recommendations and price targets for Peakstone Realty Trust and Modiv Industrial, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Peakstone Realty Trust	1	1	0	0	1.50
Modiv Industrial	0	0	1	0	3.00

Peakstone Realty Trust currently has a consensus price target of $21.00, indicating a potential upside of 52.73%. Modiv Industrial has a consensus price target of $18.00, indicating a potential upside of 21.46%. Given Peakstone Realty Trust’s higher probable upside, analysts plainly believe Peakstone Realty Trust is more favorable than Modiv Industrial.

Profitability

This table compares Peakstone Realty Trust and Modiv Industrial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Peakstone Realty Trust	-216.52%	-38.73%	-18.01%
Modiv Industrial	1.80%	0.37%	0.16%

Institutional & Insider Ownership

39.0% of Peakstone Realty Trust shares are owned by institutional investors. Comparatively, 8.2% of Modiv Industrial shares are owned by institutional investors. 0.4% of Peakstone Realty Trust shares are owned by company insiders. Comparatively, 4.6% of Modiv Industrial shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

Modiv Industrial beats Peakstone Realty Trust on 12 of the 16 factors compared between the two stocks.

About Peakstone Realty Trust

Peakstone Realty Trust (NYSE: PKST) is an internally managed, real estate investment trust (REIT) that owns and operates a high-quality, newer-vintage portfolio of predominantly single-tenant industrial and office properties. These assets are generally leased to creditworthy tenants under long-term net lease agreements with contractual rent escalations. As of March 31, 2023, Peakstone's wholly-owned portfolio consists of 19 million square feet across 24 states in primarily high-growth, strategic coastal and sunbelt markets.

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.