Comparing FrontView REIT (NYSE:FVR) and Medalist Diversified REIT (NASDAQ:MDRR)

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

Valuation & Earnings

This table compares Medalist Diversified REIT and FrontView REIT”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Medalist Diversified REIT	$9.73 million	1.35	$30,000.00	($1.81)	-6.56
FrontView REIT	$66.13 million	5.30	-$22.21 million	($0.82)	-19.75

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

Dividends

Medalist Diversified REIT pays an annual dividend of $0.27 per share and has a dividend yield of 2.3%. FrontView REIT pays an annual dividend of $0.86 per share and has a dividend yield of 5.3%. Medalist Diversified REIT pays out -14.9% of its earnings in the form of a dividend. FrontView REIT pays out -104.9% 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 raised its dividend for 2 consecutive years. FrontView REIT is clearly the better dividend stock, given its higher yield and lower payout ratio.

Insider & Institutional Ownership

17.4% of Medalist Diversified REIT shares are owned by institutional investors. 43.8% of Medalist Diversified REIT shares are owned by insiders. Comparatively, 4.3% of FrontView REIT shares are owned by 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Medalist Diversified REIT	-21.19%	-7.87%	-2.37%
FrontView REIT	-32.21%	-4.25%	-2.57%

Analyst Recommendations

This is a summary of recent ratings and price targets for Medalist Diversified REIT and FrontView REIT, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Medalist Diversified REIT	1	0	0	0	1.00
FrontView REIT	2	2	2	1	2.29

FrontView REIT has a consensus price target of $15.80, indicating a potential downside of 2.45%. Given FrontView REIT’s stronger consensus rating and higher possible upside, analysts plainly believe FrontView REIT is more favorable than Medalist Diversified REIT.

Volatility & Risk

Medalist Diversified REIT has a beta of 0.5, indicating that its stock price is 50% less volatile than the S&P 500. Comparatively, FrontView REIT has a beta of 1.33, indicating that its stock price is 33% more volatile than the S&P 500.

Summary

FrontView REIT beats Medalist Diversified REIT on 11 of the 18 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 FrontView REIT

FrontView REIT specializes in real estate investing.