Great Ajax (NYSE:AJX – Get Free Report) and Modiv Industrial (NYSE:MDV – Get Free Report) are both small-cap finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their dividends, valuation, risk, earnings, profitability, institutional ownership and analyst recommendations.
Dividends
Great Ajax pays an annual dividend of $0.24 per share and has a dividend yield of 7.9%. Modiv Industrial pays an annual dividend of $1.15 per share and has a dividend yield of 7.2%. Great Ajax pays out -6.4% of its earnings in the form of a dividend. Modiv Industrial pays out -1,045.5% 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.
Risk and Volatility
Great Ajax has a beta of 1.9, meaning that its share price is 90% more volatile than the S&P 500. Comparatively, Modiv Industrial has a beta of -0.21, meaning that its share price is 121% less volatile than the S&P 500.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Great Ajax | 0 | 2 | 1 | 0 | 2.33 |
| Modiv Industrial | 0 | 0 | 1 | 0 | 3.00 |
Great Ajax presently has a consensus target price of $6.00, suggesting a potential upside of 98.02%. Modiv Industrial has a consensus target price of $18.00, suggesting a potential upside of 12.50%. Given Great Ajax’s higher possible upside, equities research analysts plainly believe Great Ajax is more favorable than Modiv Industrial.
Valuation and Earnings
This table compares Great Ajax and Modiv Industrial”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Great Ajax | $72.33 million | 1.90 | -$47.07 million | ($3.77) | -0.80 |
| Modiv Industrial | $46.94 million | 3.29 | -$6.61 million | ($0.11) | -145.45 |
Modiv Industrial has lower revenue, but higher earnings than Great Ajax. Modiv Industrial is trading at a lower price-to-earnings ratio than Great Ajax, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
58.6% of Great Ajax shares are owned by institutional investors. Comparatively, 8.2% of Modiv Industrial shares are owned by institutional investors. 2.3% of Great Ajax shares are owned by company insiders. Comparatively, 7.4% of Modiv Industrial shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Profitability
This table compares Great Ajax and Modiv Industrial’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Great Ajax | -203.61% | -8.35% | -1.99% |
| Modiv Industrial | 6.72% | 1.42% | 0.61% |
Summary
Modiv Industrial beats Great Ajax on 9 of the 15 factors compared between the two stocks.
About Great Ajax
Great Ajax Corp. operates as a mortgage real estate investment trust. It acquires re-performing and non-performing loans; acquires or originates small balance commercial mortgage loans that are secured by multi-family residential and commercial mixed use retail/residential properties; and invests in single-family and smaller commercial properties. The company elected to be taxed as a real estate investment trust for U.S. federal income tax purposes. Great Ajax Corp. was incorporated in 2014 and is based in Tigard, Oregon.
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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