Head-To-Head Review: Peakstone Realty Trust (NYSE:PKST) & Modiv Industrial (NYSE:MDV)

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

Institutional and Insider Ownership

8.2% of Modiv Industrial shares are held by institutional investors. Comparatively, 39.0% of Peakstone Realty Trust shares are held by institutional investors. 4.6% of Modiv Industrial shares are held by insiders. Comparatively, 0.4% of Peakstone Realty Trust shares are held 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.

Earnings & Valuation

This table compares Modiv Industrial and Peakstone Realty Trust’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Modiv Industrial	$46.94 million	2.94	-$6.61 million	($0.47)	-31.32
Peakstone Realty Trust	$254.28 million	1.98	-$550.58 million	($15.52)	-0.89

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Modiv Industrial	1.80%	0.37%	0.16%
Peakstone Realty Trust	-216.52%	-38.73%	-18.01%

Dividends

Modiv Industrial pays an annual dividend of $1.15 per share and has a dividend yield of 7.8%. Peakstone Realty Trust pays an annual dividend of $0.90 per share and has a dividend yield of 6.5%. Modiv Industrial pays out -244.7% of its earnings in the form of a dividend. Peakstone Realty Trust pays out -5.8% 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. Modiv Industrial has increased its dividend for 1 consecutive years. Modiv Industrial is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Modiv Industrial and Peakstone Realty Trust, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Modiv Industrial	0	0	1	0	3.00
Peakstone Realty Trust	1	1	0	0	1.50

Modiv Industrial currently has a consensus target price of $18.00, suggesting a potential upside of 22.28%. Peakstone Realty Trust has a consensus target price of $21.00, suggesting a potential upside of 51.41%. Given Peakstone Realty Trust’s higher possible upside, analysts clearly believe Peakstone Realty Trust is more favorable than Modiv Industrial.

Summary

Modiv Industrial beats Peakstone Realty Trust on 12 of the 15 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 Peakstone Realty Trust

Peakstone Realty Trust (NYSE: PKST) is an internally managed, real estate investment trust (REIT) that owns and operates a high-quality, newer-vintage portfolio of predominantly single-tenant industrial and office properties. These assets are generally leased to creditworthy tenants under long-term net lease agreements with contractual rent escalations. As of March 31, 2023, Peakstone's wholly-owned portfolio consists of 19 million square feet across 24 states in primarily high-growth, strategic coastal and sunbelt markets.