Medalist Diversified REIT (NASDAQ:MDRR) versus Kimco Realty (NYSE:KIM) Critical Review

Medalist Diversified REIT (NASDAQ:MDRR) and Kimco Realty (NYSE:KIM) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, dividends, valuation, earnings, analyst recommendations, risk and institutional ownership.

Earnings and Valuation

This table compares Medalist Diversified REIT and Kimco Realty”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Medalist Diversified REIT	$9.92 million	1.42	-$4.57 million	($0.22)	-57.52
Kimco Realty	$2.04 billion	7.12	$410.79 million	$0.56	38.42

Kimco Realty has higher revenue and earnings than Medalist Diversified REIT. Medalist Diversified REIT is trading at a lower price-to-earnings ratio than Kimco Realty, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Medalist Diversified REIT and Kimco Realty, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Medalist Diversified REIT	0	0	0	0	0.00
Kimco Realty	0	10	4	2	2.50

Kimco Realty has a consensus target price of $24.83, indicating a potential upside of 15.42%. Given Kimco Realty’s stronger consensus rating and higher possible upside, analysts plainly believe Kimco Realty is more favorable than Medalist Diversified REIT.

Dividends

Medalist Diversified REIT pays an annual dividend of $0.26 per share and has a dividend yield of 2.1%. Kimco Realty pays an annual dividend of $1.00 per share and has a dividend yield of 4.6%. Medalist Diversified REIT pays out -118.2% of its earnings in the form of a dividend. Kimco Realty pays out 178.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Volatility and Risk

Medalist Diversified REIT has a beta of 0.72, meaning that its stock price is 28% less volatile than the S&P 500. Comparatively, Kimco Realty has a beta of 1.5, meaning that its stock price is 50% more volatile than the S&P 500.

Profitability

This table compares Medalist Diversified REIT and Kimco Realty’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Medalist Diversified REIT	-2.18%	-18.35%	-3.87%
Kimco Realty	20.17%	3.82%	2.07%

Institutional & Insider Ownership

17.4% of Medalist Diversified REIT shares are held by institutional investors. Comparatively, 89.3% of Kimco Realty shares are held by institutional investors. 56.1% of Medalist Diversified REIT shares are held by insiders. Comparatively, 2.2% of Kimco Realty shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Kimco Realty beats Medalist Diversified REIT on 15 of the 17 factors compared between the two stocks.

About Medalist Diversified REIT

Medalist Diversified REIT Inc. is a Virginia-based real estate investment trust that specializes in acquiring, owning and managing commercial real estate in the Southeast region of the U.S. The Company's strategy is to focus on commercial real estate which is expected to provide an attractive balance of risk and returns. Medalist utilizes a rigorous, consistent and replicable process for sourcing and conducting due diligence of acquisitions.

About Kimco Realty

Kimco Realty Corp. is a real estate investment trust (REIT) headquartered in New Hyde Park, N.Y., that is one of North America’s largest publicly traded owners and operators of open-air shopping centers. As of December 31, 2018, the company owned interests in 437 U.S. shopping centers comprising 76 million square feet of leasable space primarily concentrated in the top major metropolitan markets.