Reviewing NETSTREIT (NYSE:NTST) and Modiv Industrial (NYSE:MDV)

Modiv Industrial (NYSE:MDV) and NETSTREIT (NYSE:NTST) are both small-cap finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, earnings, institutional ownership, profitability, risk, dividends and analyst recommendations.

Dividends

Modiv Industrial pays an annual dividend of $1.15 per share and has a dividend yield of 7.0%. NETSTREIT pays an annual dividend of $0.84 per share and has a dividend yield of 4.9%. Modiv Industrial pays out -244.7% of its earnings in the form of a dividend. NETSTREIT pays out 933.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Modiv Industrial is clearly the better dividend stock, given its higher yield and lower payout ratio.

Insider & Institutional Ownership

8.2% of Modiv Industrial shares are owned by institutional investors. 4.6% of Modiv Industrial shares are owned by company insiders. Comparatively, 0.5% of NETSTREIT shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Modiv Industrial	-3.71%	-0.78%	-0.34%
NETSTREIT	3.32%	0.39%	0.25%

Volatility & Risk

Modiv Industrial has a beta of -0.21, suggesting that its share price is 121% less volatile than the S&P 500. Comparatively, NETSTREIT has a beta of 0.97, suggesting that its share price is 3% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Modiv Industrial and NETSTREIT, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Modiv Industrial	0	0	1	0	3.00
NETSTREIT	1	4	5	1	2.55

Modiv Industrial currently has a consensus target price of $18.00, suggesting a potential upside of 9.02%. NETSTREIT has a consensus target price of $17.88, suggesting a potential upside of 4.50%. Given Modiv Industrial’s stronger consensus rating and higher possible upside, equities analysts clearly believe Modiv Industrial is more favorable than NETSTREIT.

Earnings & Valuation

This table compares Modiv Industrial and NETSTREIT”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Modiv Industrial	$48.03 million	3.25	-$6.61 million	($0.47)	-35.13
NETSTREIT	$137.21 million	9.15	$6.84 million	$0.09	190.06

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

Summary

NETSTREIT beats Modiv Industrial on 11 of the 17 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 NETSTREIT

NETSTREIT Corp. is an internally managed real estate investment trust (REIT) based in Dallas, Texas that specializes in acquiring single-tenant net lease retail properties nationwide. The growing portfolio consists of high-quality properties leased to e-commerce resistant tenants with healthy balance sheets. Led by a management team of seasoned commercial real estate executives, NETSTREIT's strategy is to create the highest quality net lease retail portfolio in the country with the goal of generating consistent cash flows and dividends for its investors.