Medalist Diversified REIT (NASDAQ:MDRR – Get Free Report) and Alexandria Real Estate Equities (NYSE:ARE – Get Free Report) are both finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their institutional ownership, valuation, analyst recommendations, profitability, risk, dividends and earnings.
Dividends
Medalist Diversified REIT pays an annual dividend of $0.27 per share and has a dividend yield of 2.2%. Alexandria Real Estate Equities pays an annual dividend of $2.88 per share and has a dividend yield of 5.3%. Medalist Diversified REIT pays out -14.9% of its earnings in the form of a dividend. Alexandria Real Estate Equities pays out -116.6% 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. Medalist Diversified REIT has raised its dividend for 2 consecutive years and Alexandria Real Estate Equities has raised its dividend for 15 consecutive years. Alexandria Real Estate Equities is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Insider and Institutional Ownership
17.4% of Medalist Diversified REIT shares are owned by institutional investors. Comparatively, 96.5% of Alexandria Real Estate Equities shares are owned by institutional investors. 43.8% of Medalist Diversified REIT shares are owned by insiders. Comparatively, 1.2% of Alexandria Real Estate Equities shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Medalist Diversified REIT | $9.73 million | 1.42 | $30,000.00 | ($1.81) | -6.89 |
| Alexandria Real Estate Equities | $3.03 billion | 3.13 | $322.95 million | ($2.47) | -22.13 |
Alexandria Real Estate Equities has higher revenue and earnings than Medalist Diversified REIT. Alexandria Real Estate Equities is trading at a lower price-to-earnings ratio than Medalist Diversified REIT, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of current ratings and recommmendations for Medalist Diversified REIT and Alexandria Real Estate Equities, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Medalist Diversified REIT | 1 | 0 | 0 | 0 | 1.00 |
| Alexandria Real Estate Equities | 3 | 9 | 5 | 0 | 2.12 |
Alexandria Real Estate Equities has a consensus target price of $63.93, indicating a potential upside of 16.97%. Given Alexandria Real Estate Equities’ stronger consensus rating and higher possible upside, analysts plainly believe Alexandria Real Estate Equities is more favorable than Medalist Diversified REIT.
Profitability
This table compares Medalist Diversified REIT and Alexandria Real Estate Equities’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Medalist Diversified REIT | -21.19% | -7.87% | -2.37% |
| Alexandria Real Estate Equities | -47.23% | -6.82% | -3.90% |
Volatility & Risk
Medalist Diversified REIT has a beta of 0.48, indicating that its share price is 52% less volatile than the S&P 500. Comparatively, Alexandria Real Estate Equities has a beta of 1.31, indicating that its share price is 31% more volatile than the S&P 500.
Summary
Alexandria Real Estate Equities beats Medalist Diversified REIT on 13 of the 17 factors compared between the two stocks.
About Medalist Diversified REIT
Medalist Diversified REIT Inc. is a Virginia-based real estate investment trust that specializes in acquiring, owning and managing commercial real estate in the Southeast region of the U.S. The Company's strategy is to focus on commercial real estate which is expected to provide an attractive balance of risk and returns. Medalist utilizes a rigorous, consistent and replicable process for sourcing and conducting due diligence of acquisitions.
About Alexandria Real Estate Equities
Alexandria Real Estate Equities, Inc. (NYSE: ARE), an S&P 500 company, is a best-in-class, mission-driven life science REIT making a positive and lasting impact on the world. As the pioneer of the life science real estate niche since our founding in 1994, Alexandria is the preeminent and longest-tenured owner, operator, and developer of collaborative life science, agtech, and advanced technology mega campuses in AAA innovation cluster locations, including Greater Boston, the San Francisco Bay Area, New York City, San Diego, Seattle, Maryland, and Research Triangle. Alexandria has a total market capitalization of $33.1 billion and an asset base in North America of 73.5 million SF as of December 31, 2023, which includes 42.0 million RSF of operating properties, 5.5 million RSF of Class A/A+ properties undergoing construction and one near-term project expected to commence construction in the next two years, 2.1 million RSF of priority anticipated development and redevelopment projects, and 23.9 million SF of future development projects. Alexandria has a longstanding and proven track record of developing Class A/A+ properties clustered in life science, agtech, and advanced technology mega campuses that provide our innovative tenants with highly dynamic and collaborative environments that enhance their ability to successfully recruit and retain world-class talent and inspire productivity, efficiency, creativity, and success. Alexandria also provides strategic capital to transformative life science, agrifoodtech, climate innovation, and technology companies through our venture capital platform. We believe our unique business model and diligent underwriting ensure a high-quality and diverse tenant base that results in higher occupancy levels, longer lease terms, higher rental income, higher returns, and greater long-term asset value.
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