Pebblebrook Hotel Trust (NYSE:PEB – Get Free Report) and Modiv Industrial (NYSE:MDV – Get Free Report) are both small-cap finance companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, risk, profitability, earnings, dividends, analyst recommendations and valuation.
Profitability
This table compares Pebblebrook Hotel Trust and Modiv Industrial’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Pebblebrook Hotel Trust | 0.25% | 0.13% | 0.06% |
| Modiv Industrial | 6.72% | 1.42% | 0.61% |
Analyst Ratings
This is a breakdown of current ratings for Pebblebrook Hotel Trust and Modiv Industrial, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Pebblebrook Hotel Trust | 1 | 3 | 2 | 0 | 2.17 |
| Modiv Industrial | 0 | 0 | 1 | 0 | 3.00 |
Dividends
Pebblebrook Hotel Trust pays an annual dividend of $0.04 per share and has a dividend yield of 0.3%. Modiv Industrial pays an annual dividend of $1.17 per share and has a dividend yield of 7.9%. Pebblebrook Hotel Trust pays out -13.8% of its earnings in the form of a dividend. Modiv Industrial pays out -1,063.6% 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. Modiv Industrial is clearly the better dividend stock, given its higher yield and lower payout ratio.
Risk & Volatility
Pebblebrook Hotel Trust has a beta of 1.85, meaning that its share price is 85% 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.
Earnings and Valuation
This table compares Pebblebrook Hotel Trust and Modiv Industrial”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Pebblebrook Hotel Trust | $1.42 billion | 1.03 | -$78.02 million | ($0.29) | -42.08 |
| Modiv Industrial | $46.94 million | 3.04 | -$6.61 million | ($0.11) | -134.23 |
Modiv Industrial has lower revenue, but higher earnings than Pebblebrook Hotel Trust. Modiv Industrial is trading at a lower price-to-earnings ratio than Pebblebrook Hotel Trust, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
8.2% of Modiv Industrial shares are owned by institutional investors. 2.4% of Pebblebrook Hotel Trust 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 hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Summary
Modiv Industrial beats Pebblebrook Hotel Trust on 12 of the 16 factors compared between the two stocks.
About Pebblebrook Hotel Trust
Pebblebrook Hotel Trust (NYSE: PEB) is a publicly traded real estate investment trust ("REIT") and the largest owner of urban and resort lifestyle hotels and resorts in the United States. The Company owns 47 hotels and resorts, totaling approximately 12,200 guest rooms across 13 urban and resort markets.
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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