NETSTREIT (NYSE:NTST – Get Free Report) and Modiv Industrial (NYSE:MDV – Get Free Report) are both small-cap finance companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, risk, profitability, dividends, valuation and earnings.
Profitability
This table compares NETSTREIT and Modiv Industrial’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| NETSTREIT | 3.32% | 0.39% | 0.25% |
| Modiv Industrial | -3.71% | -0.78% | -0.34% |
Analyst Recommendations
This is a summary of recent ratings for NETSTREIT and Modiv Industrial, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| NETSTREIT | 1 | 4 | 5 | 1 | 2.55 |
| Modiv Industrial | 0 | 0 | 1 | 0 | 3.00 |
Valuation & Earnings
This table compares NETSTREIT and Modiv Industrial’s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| NETSTREIT | $131.90 million | 9.93 | $6.84 million | $0.09 | 188.02 |
| Modiv Industrial | $48.03 million | 3.14 | -$6.61 million | ($0.47) | -33.91 |
NETSTREIT has higher revenue and earnings than Modiv Industrial. Modiv Industrial is trading at a lower price-to-earnings ratio than NETSTREIT, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
NETSTREIT has a beta of 0.97, meaning that its share price is 3% less volatile than the S&P 500. Comparatively, Modiv Industrial has a beta of -0.23, meaning that its share price is 123% less volatile than the S&P 500.
Dividends
NETSTREIT pays an annual dividend of $0.82 per share and has a dividend yield of 4.8%. Modiv Industrial pays an annual dividend of $1.15 per share and has a dividend yield of 7.2%. NETSTREIT pays out 911.2% 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 -244.7% of its earnings in the form of a dividend. Modiv Industrial is clearly the better dividend stock, given its higher yield and lower payout ratio.
Insider & Institutional Ownership
8.2% of Modiv Industrial shares are owned by institutional investors. 0.5% of NETSTREIT 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 endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Summary
NETSTREIT beats Modiv Industrial on 11 of the 17 factors compared between the two stocks.
About NETSTREIT
NETSTREIT Corp. is an internally managed real estate investment trust (REIT) based in Dallas, Texas that specializes in acquiring single-tenant net lease retail properties nationwide. The growing portfolio consists of high-quality properties leased to e-commerce resistant tenants with healthy balance sheets. Led by a management team of seasoned commercial real estate executives, NETSTREIT's strategy is to create the highest quality net lease retail portfolio in the country with the goal of generating consistent cash flows and dividends for its investors.
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.
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