American Homes 4 Rent (NYSE:AMH – Get Free Report) and Modiv Industrial (NYSE:MDV – Get Free Report) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, risk, valuation, analyst recommendations, earnings, institutional ownership and profitability.
Dividends
American Homes 4 Rent pays an annual dividend of $1.20 per share and has a dividend yield of 3.4%. Modiv Industrial pays an annual dividend of $1.17 per share and has a dividend yield of 7.6%. American Homes 4 Rent pays out 108.1% 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 pays out -265.9% of its earnings in the form of a dividend. American Homes 4 Rent has raised its dividend for 5 consecutive years and Modiv Industrial has raised its dividend for 3 consecutive years. Modiv Industrial is clearly the better dividend stock, given its higher yield and lower payout ratio.
Risk and Volatility
American Homes 4 Rent has a beta of 0.72, suggesting that its share price is 28% less volatile than the S&P 500. Comparatively, Modiv Industrial has a beta of -0.31, suggesting that its share price is 131% less volatile than the S&P 500.
Insider and Institutional Ownership
Earnings & Valuation
This table compares American Homes 4 Rent and Modiv Industrial”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| American Homes 4 Rent | $1.73 billion | 7.67 | $412.43 million | $1.11 | 32.19 |
| Modiv Industrial | $46.76 million | 3.34 | $6.02 million | ($0.44) | -34.90 |
American Homes 4 Rent has higher revenue and earnings than Modiv Industrial. Modiv Industrial is trading at a lower price-to-earnings ratio than American Homes 4 Rent, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares American Homes 4 Rent and Modiv Industrial’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| American Homes 4 Rent | 23.72% | 5.60% | 3.29% |
| Modiv Industrial | -0.48% | -0.11% | -0.04% |
Analyst Ratings
This is a summary of current ratings and recommmendations for American Homes 4 Rent and Modiv Industrial, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| American Homes 4 Rent | 0 | 6 | 8 | 0 | 2.57 |
| Modiv Industrial | 0 | 0 | 0 | 1 | 4.00 |
American Homes 4 Rent presently has a consensus price target of $41.0714, suggesting a potential upside of 14.94%. Modiv Industrial has a consensus price target of $18.00, suggesting a potential upside of 17.23%. Given Modiv Industrial’s stronger consensus rating and higher possible upside, analysts plainly believe Modiv Industrial is more favorable than American Homes 4 Rent.
Summary
American Homes 4 Rent beats Modiv Industrial on 13 of the 18 factors compared between the two stocks.
About American Homes 4 Rent
American Homes 4 Rent operates as a real estate investment trust. It engages in the acquisition, renovation, leasing, and operating of single-family homes as rental properties. The company was founded by Bradley Wayne Hughes, Sr. on October 19, 2012 and is headquartered in Las Vegas, NV.
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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