Reviewing Iron Mountain (NYSE:IRM) and Modiv (NYSE:MDV)

Modiv (NYSE:MDV – Get Rating) and Iron Mountain (NYSE:IRM – Get Rating) are both finance companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, institutional ownership, risk, valuation, dividends, profitability and analyst recommendations.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Modiv and Iron Mountain, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Modiv	0	0	5	0	3.00
Iron Mountain	0	1	3	0	2.75

Modiv presently has a consensus target price of $18.90, indicating a potential upside of 27.44%. Iron Mountain has a consensus target price of $62.00, indicating a potential upside of 15.71%. Given Modiv’s stronger consensus rating and higher possible upside, analysts plainly believe Modiv is more favorable than Iron Mountain.

Institutional and Insider Ownership

6.2% of Modiv shares are owned by institutional investors. Comparatively, 77.1% of Iron Mountain shares are owned by institutional investors. 4.2% of Modiv shares are owned by company insiders. Comparatively, 2.2% of Iron Mountain shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Risk and Volatility

Modiv has a beta of -0.15, indicating that its stock price is 115% less volatile than the S&P 500. Comparatively, Iron Mountain has a beta of 0.91, indicating that its stock price is 9% less volatile than the S&P 500.

Earnings & Valuation

This table compares Modiv and Iron Mountain’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Modiv	$46.17 million	2.43	-$3.29 million	($0.15)	-98.87
Iron Mountain	$5.10 billion	3.06	$556.98 million	$1.98	27.06

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

Dividends

Modiv pays an annual dividend of $1.15 per share and has a dividend yield of 7.8%. Iron Mountain pays an annual dividend of $2.47 per share and has a dividend yield of 4.6%. Modiv pays out -766.7% of its earnings in the form of a dividend. Iron Mountain pays out 124.7% 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 is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares Modiv and Iron Mountain’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Modiv	6.83%	1.30%	0.67%
Iron Mountain	11.20%	88.48%	3.28%

Summary

Iron Mountain beats Modiv on 9 of the 15 factors compared between the two stocks.

About Modiv

(Get Rating)

Modiv Inc., (the Company) was incorporated on May 14, 2015 as a Maryland corporation. The Company was formed to primarily invest, directly or indirectly, in real estate owning entities which own single-tenant income-producing properties located in the United States, which are leased to creditworthy tenants under long-term net leases. The Company's goal is to generate current income for investors and long-term capital appreciation in the value of its properties.

About Iron Mountain

(Get Rating)

Iron Mountain, Inc. engages in the provision of storage and information management solutions. It operates through the following business segments: North American Records & Information Management Business, North American Data Management Business, Western European Business, Other International Business, Global Data Center Business and Corporate & Other Business. The North American Records & Information Management Business segment offers record management, destruction, and fulfillment services throughout the U.S. and Canada. The North American Data Management Business segment handles data protection and recovery, server and computer backup services, and safeguarding of electronic and physical media in the U.S. and Canada. The Western European Business segment offers records management, data protection and recovery services, and document management solutions throughout the United Kingdom, Ireland, Austria, Belgium, France, Germany, Netherlands, Spain, and Switzerland. The Other International Business segment offers storage and information management services throughout the remaining European countries, Latin America, the Middle East and Africa. The Global Data Center Business segment p