Head-To-Head Review: Medalist Diversified REIT (NASDAQ:MDRR) vs. IRSA Inversiones Y Representaciones (NYSE:IRS)

IRSA Inversiones Y Representaciones (NYSE:IRS) and Medalist Diversified REIT (NASDAQ:MDRR) are both small-cap real estate companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, earnings, dividends, institutional ownership, analyst recommendations, risk and profitability.

Dividends

IRSA Inversiones Y Representaciones pays an annual dividend of $1.40 per share and has a dividend yield of 8.7%. Medalist Diversified REIT pays an annual dividend of $0.27 per share and has a dividend yield of 2.3%. IRSA Inversiones Y Representaciones pays out 42.6% of its earnings in the form of a dividend. Medalist Diversified REIT pays out 7.0% 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. Medalist Diversified REIT has increased its dividend for 2 consecutive years.

Profitability

This table compares IRSA Inversiones Y Representaciones and Medalist Diversified REIT’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
IRSA Inversiones Y Representaciones	58.90%	17.99%	8.69%
Medalist Diversified REIT	80.24%	-15.18%	-6.46%

Analyst Recommendations

This is a summary of current ratings and target prices for IRSA Inversiones Y Representaciones and Medalist Diversified REIT, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
IRSA Inversiones Y Representaciones	0	1	0	1	3.00
Medalist Diversified REIT	0	1	0	0	2.00

IRSA Inversiones Y Representaciones currently has a consensus target price of $23.00, suggesting a potential upside of 43.54%. Given IRSA Inversiones Y Representaciones’ stronger consensus rating and higher possible upside, equities analysts clearly believe IRSA Inversiones Y Representaciones is more favorable than Medalist Diversified REIT.

Insider & Institutional Ownership

45.5% of IRSA Inversiones Y Representaciones shares are owned by institutional investors. Comparatively, 17.4% of Medalist Diversified REIT shares are owned by institutional investors. 25.1% of IRSA Inversiones Y Representaciones shares are owned by insiders. Comparatively, 77.6% of Medalist Diversified REIT shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Volatility & Risk

IRSA Inversiones Y Representaciones has a beta of 1.3, indicating that its stock price is 30% more volatile than the S&P 500. Comparatively, Medalist Diversified REIT has a beta of 0.57, indicating that its stock price is 43% less volatile than the S&P 500.

Valuation & Earnings

This table compares IRSA Inversiones Y Representaciones and Medalist Diversified REIT”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
IRSA Inversiones Y Representaciones	$465.14 million	2.91	$278.34 million	$3.29	4.87
Medalist Diversified REIT	$9.58 million	2.03	-$2.39 million	$3.83	3.12

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

Summary

IRSA Inversiones Y Representaciones beats Medalist Diversified REIT on 12 of the 17 factors compared between the two stocks.

About IRSA Inversiones Y Representaciones

IRSA Inversiones y Representaciones Sociedad Anónima, together with its subsidiaries, engages in the diversified real estate activities in Argentina. It operates through five segments: Shopping Malls, Offices, Hotels, Sales and Developments, and Others. The company is involved in the acquisition, development, and operation of shopping malls, office buildings, and other non-shopping mall properties primarily for rental purposes. It also acquires and operates luxury hotels and resorts under the Intercontinental, Libertador, and Llao Llao names; develops and sells residential properties, including apartment tower complexes; and acquires undeveloped land reserves for future development or sale. In addition, the company engages in the development and operation of stadium; and provision of ¡appa!, a digital customer loyalty system platform, for consumption in shopping malls, use of parking spaces, and redemption of corporate benefits. The company was incorporated in 1943 and is headquartered in Buenos Aires, Argentina. IRSA Inversiones y Representaciones Sociedad Anónima operates as a subsidiary of Cresud S.A.C.I.F. y A.

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.