Sun Communities (NYSE:SUI – Get Free Report) and Modiv Industrial (NYSE:MDV – Get Free Report) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their risk, institutional ownership, analyst recommendations, earnings, profitability, dividends and valuation.
Analyst Ratings
This is a breakdown of current ratings and recommmendations for Sun Communities and Modiv Industrial, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Sun Communities | 1 | 9 | 5 | 1 | 2.38 |
| Modiv Industrial | 0 | 1 | 0 | 1 | 3.00 |
Sun Communities currently has a consensus price target of $137.86, suggesting a potential upside of 11.83%. Modiv Industrial has a consensus price target of $18.00, suggesting a potential upside of 22.57%. Given Modiv Industrial’s stronger consensus rating and higher probable upside, analysts clearly believe Modiv Industrial is more favorable than Sun Communities.
Volatility and Risk
Valuation and Earnings
This table compares Sun Communities and Modiv Industrial”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Sun Communities | $3.22 billion | 4.79 | $101.80 million | $10.22 | 12.06 |
| Modiv Industrial | $46.76 million | 3.19 | $6.02 million | ($0.44) | -33.38 |
Sun Communities has higher revenue and earnings than Modiv Industrial. Modiv Industrial is trading at a lower price-to-earnings ratio than Sun Communities, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
99.6% of Sun Communities shares are owned by institutional investors. Comparatively, 8.2% of Modiv Industrial shares are owned by institutional investors. 1.8% of Sun Communities shares are owned by company insiders. Comparatively, 2.8% of Modiv Industrial shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Dividends
Sun Communities pays an annual dividend of $4.16 per share and has a dividend yield of 3.4%. Modiv Industrial pays an annual dividend of $1.17 per share and has a dividend yield of 8.0%. Sun Communities pays out 40.7% of its earnings in the form of a dividend. Modiv Industrial pays out -265.9% 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. Sun Communities has raised its dividend for 8 consecutive years and Modiv Industrial has raised its dividend for 3 consecutive years. Modiv Industrial is clearly the better dividend stock, given its higher yield and lower payout ratio.
Profitability
This table compares Sun Communities and Modiv Industrial’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Sun Communities | 48.86% | -0.60% | -0.29% |
| Modiv Industrial | -0.48% | -0.11% | -0.04% |
Summary
Sun Communities beats Modiv Industrial on 10 of the 17 factors compared between the two stocks.
About Sun Communities
Established in 1975, Sun Communities, Inc. became a publicly owned corporation in December 1993. The Company is a fully integrated REIT listed on the New York Stock Exchange under the symbol: SUI. As of December 31, 2023, the Company owned, operated, or had an interest in a portfolio of 667 developed MH, RV and Marina properties comprising 179,310 developed sites and approximately 48,030 wet slips and dry storage spaces in the U.S., the UK and Canada.
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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