Financial Contrast: UMH Properties (NYSE:UMH) vs. Modiv Industrial (NYSE:MDV)

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

Dividends

Modiv Industrial pays an annual dividend of $1.17 per share and has a dividend yield of 7.3%. UMH Properties pays an annual dividend of $0.86 per share and has a dividend yield of 4.6%. Modiv Industrial pays out 468.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. UMH Properties pays out 2,866.7% 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 and Institutional Ownership

8.2% of Modiv Industrial shares are held by institutional investors. Comparatively, 75.4% of UMH Properties shares are held by institutional investors. 7.4% of Modiv Industrial shares are held by insiders. Comparatively, 8.6% of UMH Properties shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Modiv Industrial and UMH Properties’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Modiv Industrial	6.72%	1.42%	0.61%
UMH Properties	11.81%	6.06%	1.92%

Earnings and Valuation

This table compares Modiv Industrial and UMH Properties”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Modiv Industrial	$46.76 million	3.43	-$6.61 million	$0.25	64.38
UMH Properties	$240.55 million	6.40	$8.01 million	$0.03	622.77

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

Analyst Ratings

This is a summary of recent ratings and recommmendations for Modiv Industrial and UMH Properties, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Modiv Industrial	0	0	1	0	3.00
UMH Properties	0	2	2	0	2.50

Modiv Industrial presently has a consensus target price of $18.00, suggesting a potential upside of 11.84%. UMH Properties has a consensus target price of $21.17, suggesting a potential upside of 13.29%. Given UMH Properties’ higher probable upside, analysts clearly believe UMH Properties is more favorable than Modiv Industrial.

Volatility and Risk

Modiv Industrial has a beta of -0.22, meaning that its share price is 122% less volatile than the S&P 500. Comparatively, UMH Properties has a beta of 1.29, meaning that its share price is 29% more volatile than the S&P 500.

Summary

UMH Properties beats Modiv Industrial on 12 of the 16 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 UMH Properties

UMH Properties, Inc., which was organized in 1968, is a public equity REIT that owns and operates 135 manufactured home communities containing approximately 25,800 developed homesites. These communities are located in New Jersey, New York, Ohio, Pennsylvania, Tennessee, Indiana, Michigan, Maryland, Alabama, South Carolina and Georgia. UMH also has an ownership interest in and operates two communities in Florida, containing 363 sites, through its joint venture with Nuveen Real Estate