Modiv Industrial (NYSE:MDV) & Terreno Realty (NYSE:TRNO) Critical Contrast

Modiv Industrial (NYSE:MDV) and Terreno Realty (NYSE:TRNO) are both real estate companies, but which is the better business? We will compare the two companies based on the strength of their dividends, institutional ownership, profitability, analyst recommendations, earnings, valuation and risk.

Analyst Ratings

This is a summary of recent ratings for Modiv Industrial and Terreno Realty, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Modiv Industrial	0	6	0	0	2.00
Terreno Realty	2	3	7	1	2.54

Modiv Industrial currently has a consensus price target of $18.50, indicating a potential upside of 2.49%. Terreno Realty has a consensus price target of $73.29, indicating a potential upside of 11.47%. Given Terreno Realty’s stronger consensus rating and higher probable upside, analysts clearly believe Terreno Realty is more favorable than Modiv Industrial.

Valuation & Earnings

This table compares Modiv Industrial and Terreno Realty”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Modiv Industrial	$46.16 million	4.04	$1.07 million	$0.36	50.14
Terreno Realty	$476.38 million	15.04	$402.99 million	$3.73	17.63

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

Dividends

Modiv Industrial pays an annual dividend of $1.20 per share and has a dividend yield of 6.6%. Terreno Realty pays an annual dividend of $2.08 per share and has a dividend yield of 3.2%. Modiv Industrial pays out 333.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Terreno Realty pays out 55.8% of its earnings in the form of a dividend. Modiv Industrial has increased its dividend for 3 consecutive years and Terreno Realty has increased its dividend for 5 consecutive years.

Insider and Institutional Ownership

8.2% of Modiv Industrial shares are held by institutional investors. 2.8% of Modiv Industrial shares are held by company insiders. Comparatively, 1.9% of Terreno Realty shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Volatility & Risk

Modiv Industrial has a beta of -0.07, indicating that its stock price is 107% less volatile than the S&P 500. Comparatively, Terreno Realty has a beta of 1.02, indicating that its stock price is 2% more volatile than the S&P 500.

Profitability

This table compares Modiv Industrial and Terreno Realty’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Modiv Industrial	16.35%	3.75%	1.55%
Terreno Realty	77.22%	9.21%	7.07%

Summary

Terreno Realty beats Modiv Industrial on 14 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 Terreno Realty

Terreno Realty Corporation (Terreno, and together with its subsidiaries, the Company) acquires, owns and operates industrial real estate in six major coastal U.S. markets: Los Angeles, Northern New Jersey/New York City, San Francisco Bay Area, Seattle, Miami, and Washington, D.C. All square feet, acres, occupancy and number of properties disclosed in these notes to the consolidated financial statements are unaudited. As of December 31, 2023, the Company owned 259 buildings aggregating approximately 16.0 million square feet, 45 improved land parcels consisting of approximately 152.4 acres, seven properties under development or redevelopment and approximately 62.7 acres of land entitled for future development. The Company is an internally managed Maryland corporation and elected to be taxed as a real estate investment trust (REIT) under Sections 856 through 860 of the Internal Revenue Code of 1986, as amended (the Code), commencing with its taxable year ended December 31, 2010.