Centerspace (NYSE:CSR – Get Free Report) and Modiv Industrial (NYSE:MDV – Get Free Report) are both small-cap finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, institutional ownership, valuation, profitability, earnings, analyst recommendations and dividends.
Dividends
Centerspace pays an annual dividend of $3.08 per share and has a dividend yield of 5.8%. Modiv Industrial pays an annual dividend of $1.17 per share and has a dividend yield of 7.8%. Centerspace pays out -171.1% of its earnings in the form of a dividend. Modiv Industrial pays out -265.9% 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. Centerspace has increased its dividend for 2 consecutive years and Modiv Industrial has increased its dividend for 3 consecutive years. Modiv Industrial is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Valuation & Earnings
This table compares Centerspace and Modiv Industrial”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Centerspace | $260.98 million | 3.44 | -$10.69 million | ($1.80) | -29.75 |
| Modiv Industrial | $47.01 million | 3.22 | $6.02 million | ($0.44) | -34.02 |
Modiv Industrial has lower revenue, but higher earnings than Centerspace. Modiv Industrial is trading at a lower price-to-earnings ratio than Centerspace, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Centerspace has a beta of 0.72, meaning that its stock price is 28% less volatile than the S&P 500. Comparatively, Modiv Industrial has a beta of -0.31, meaning that its stock price is 131% less volatile than the S&P 500.
Analyst Recommendations
This is a summary of current ratings and price targets for Centerspace and Modiv Industrial, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Centerspace | 0 | 4 | 4 | 1 | 2.67 |
| Modiv Industrial | 0 | 0 | 0 | 1 | 4.00 |
Centerspace presently has a consensus target price of $70.7778, suggesting a potential upside of 32.17%. Modiv Industrial has a consensus target price of $18.00, suggesting a potential upside of 20.24%. Given Centerspace’s higher probable upside, analysts clearly believe Centerspace is more favorable than Modiv Industrial.
Insider & Institutional Ownership
79.0% of Centerspace shares are held by institutional investors. Comparatively, 8.2% of Modiv Industrial shares are held by institutional investors. 0.4% of Centerspace shares are held by company insiders. Comparatively, 2.8% of Modiv Industrial 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.
Profitability
This table compares Centerspace and Modiv Industrial’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Centerspace | -9.13% | -2.81% | -1.27% |
| Modiv Industrial | -0.48% | -0.11% | -0.04% |
Summary
Modiv Industrial beats Centerspace on 10 of the 17 factors compared between the two stocks.
About Centerspace
Centerspace is an owner and operator of apartment communities committed to providing great homes by focusing on integrity and serving others. Founded in 1970, as of September 30, 2023, Centerspace owned interests in 71 apartment communities consisting of 12,785 apartment homes located in Colorado, Minnesota, Montana, Nebraska, North Dakota, and South Dakota. Centerspace was named a Top Workplace for the fourth consecutive year in 2023 by the Minneapolis Star Tribune.
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.
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