Head to Head Survey: Public Storage (NYSE:PSA) versus Modiv Industrial (NYSE:MDV)

Modiv Industrial (NYSE:MDV) and Public Storage (NYSE:PSA) are both finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, earnings, valuation, analyst recommendations, dividends, profitability and risk.

Profitability

This table compares Modiv Industrial and Public Storage’s 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%
Public Storage	40.54%	34.07%	9.60%

Insider and Institutional Ownership

8.2% of Modiv Industrial shares are owned by institutional investors. Comparatively, 78.8% of Public Storage shares are owned by institutional investors. 7.4% of Modiv Industrial shares are owned by insiders. Comparatively, 11.0% of Public Storage shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Modiv Industrial and Public Storage”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Modiv Industrial	$47.12 million	3.06	-$6.61 million	($0.11)	-135.91
Public Storage	$4.68 billion	11.16	$2.15 billion	$9.63	30.96

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

Dividends

Modiv Industrial pays an annual dividend of $1.15 per share and has a dividend yield of 7.7%. Public Storage pays an annual dividend of $12.00 per share and has a dividend yield of 4.0%. Modiv Industrial pays out -1,045.5% of its earnings in the form of a dividend. Public Storage pays out 124.6% 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.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Modiv Industrial and Public Storage, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Modiv Industrial	0	0	1	0	3.00
Public Storage	1	6	6	2	2.60

Modiv Industrial presently has a consensus price target of $18.00, indicating a potential upside of 20.40%. Public Storage has a consensus price target of $342.07, indicating a potential upside of 14.75%. Given Modiv Industrial’s stronger consensus rating and higher probable upside, equities analysts clearly believe Modiv Industrial is more favorable than Public Storage.

Risk & Volatility

Modiv Industrial has a beta of -0.24, indicating that its share price is 124% less volatile than the S&P 500. Comparatively, Public Storage has a beta of 0.71, indicating that its share price is 29% less volatile than the S&P 500.

Summary

Public Storage beats Modiv Industrial on 13 of the 17 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 Public Storage

Public Storage, a member of the S&P 500 and FT Global 500, is a REIT that primarily acquires, develops, owns, and operates self-storage facilities. At December 31, 2023, we had: (i) interests in 3,044 self-storage facilities located in 40 states with approximately 218 million net rentable square feet in the United States and (ii) a 35% common equity interest in Shurgard Self Storage Limited (Euronext Brussels: SHUR), which owned 275 self-storage facilities located in seven Western European nations with approximately 15 million net rentable square feet operated under the Shurgard brand. Our headquarters are located in Glendale, California.