Modiv Industrial (NYSE:MDV – Get Free Report) and Invitation Home (NYSE:INVH – Get Free Report) are both finance companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, dividends, institutional ownership, risk, valuation, earnings and analyst recommendations.
Profitability
This table compares Modiv Industrial and Invitation Home’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Modiv Industrial | 3.00% | 0.67% | 0.28% |
| Invitation Home | 21.70% | 6.03% | 3.14% |
Earnings and Valuation
This table compares Modiv Industrial and Invitation Home”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Modiv Industrial | $46.76 million | 3.26 | $6.02 million | ($0.26) | -57.06 |
| Invitation Home | $2.62 billion | 6.28 | $453.92 million | $0.95 | 28.24 |
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.
Institutional & Insider Ownership
8.2% of Modiv Industrial shares are owned by institutional investors. Comparatively, 96.8% of Invitation Home shares are owned by institutional investors. 2.8% of Modiv Industrial shares are owned by company insiders. Comparatively, 0.3% of Invitation Home shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Volatility and Risk
Modiv Industrial has a beta of -0.32, indicating that its stock price is 132% less volatile than the S&P 500. Comparatively, Invitation Home has a beta of 0.83, indicating that its stock price is 17% less volatile than the S&P 500.
Dividends
Modiv Industrial pays an annual dividend of $1.17 per share and has a dividend yield of 7.9%. Invitation Home pays an annual dividend of $1.16 per share and has a dividend yield of 4.3%. Modiv Industrial pays out -450.0% of its earnings in the form of a dividend. 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 has raised its dividend for 3 consecutive years and Invitation Home 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.
Analyst Recommendations
This is a summary of recent ratings and target prices for Modiv Industrial and Invitation Home, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Modiv Industrial | 0 | 1 | 0 | 1 | 3.00 |
| Invitation Home | 0 | 9 | 8 | 0 | 2.47 |
Modiv Industrial presently has a consensus target price of $18.00, suggesting a potential upside of 21.33%. Invitation Home has a consensus target price of $34.59, suggesting a potential upside of 28.96%. Given Invitation Home’s higher possible upside, analysts plainly believe Invitation Home is more favorable than Modiv Industrial.
Summary
Invitation Home beats Modiv Industrial on 12 of the 18 factors compared between the two stocks.
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.
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.
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