Medalist Diversified REIT (NASDAQ:MDRR) versus Apartment Income REIT (NYSE:AIRC) Financial Analysis

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Medal-winning Diversified REIT (NASDAQ: MDRRGet a rating) and Apartment Income REIT (NYSE: AIRCGet a rating) are both finance companies, but which is the better investment? We’ll compare the two companies based on the strength of their profitability, institutional ownership, earnings, risk, analyst recommendations, valuation, and dividends.

Analyst Recommendations

This is a summary of the current recommendations and price targets for Medalist Diversified REIT and Apartment Income REIT, as provided by MarketBeat.

Sales Ratings Hold odds Buy reviews Strong buy odds Rating
Medal-winning diversified REIT 0 0 0 0 N / A
Apartment Income REIT 1 2 3 0 2.33

Apartment Income REIT has a consensus price target of $50.00, suggesting a potential upside of 19.96%. Given Apartment Income REIT’s possible higher upside, analysts clearly believe that Apartment Income REIT is more favorable than Medalist Diversified REIT.

Benefits and evaluation

This table compares the gross revenue, earnings per share and valuation of Medalist Diversified REIT and Apartment Income REIT.

Gross revenue Price/sales ratio Net revenue Earnings per share Price/earnings ratio
Medal-winning diversified REIT $11.47 million 1.31 -4.36 million dollars ($0.17) -5.06
Apartment Income REIT $740.85 million 8.84 $447.62 million $4.70 8.87

Apartment Income REIT has higher income and earnings than Medalist Diversified REIT. Medalist Diversified REIT trades at a lower price-to-earnings ratio than Apartment Income REIT, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares the net margins, return on equity and return on assets of Medalist Diversified REIT and Apartment Income REIT.

Net margins Return on equity return on assets
Medal-winning diversified REIT -26.28% -13.03% -3.31%
Apartment Income REIT 99.27% 40.71% 11.57%

Volatility and risk

Medalist Diversified REIT has a beta of 0.81, indicating that its stock price is 19% less volatile than the S&P 500. In comparison, Apartment Income REIT has a beta of 1.04, indicating that its stock price is 4% more volatile than the S&P 500.

Dividends

Medalist Diversified REIT pays an annual dividend of $0.08 per share and has a dividend yield of 9.3%. Apartment Income REIT pays an annual dividend of $1.80 per share and has a dividend yield of 4.3%. Medalist Diversified REIT distributes -47.1% of its earnings as a dividend. Apartment Income REIT pays out 38.3% of its earnings as a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings over the next few years. Medalist Diversified REIT is clearly the best dividend stock, given its higher yield and lower payout ratio.

Insider and Institutional Ownership

19.0% of the shares of Medalist Diversified REIT are held by institutional investors. By comparison, 99.2% of Apartment Income REIT’s shares are held by institutional investors. 4.1% of the shares of Medalist Diversified REIT are held by insiders. By comparison, 1.1% of Apartment Income REIT’s shares are held by insiders. Strong institutional ownership indicates that hedge funds, endowments, and large fund managers believe a stock will outperform the market over the long term.

Summary

Apartment Income REIT beats Medalist Diversified REIT on 12 out of 15 factors compared between the two stocks.

About Medalist Diversified REIT

(Get a rating)

Medalist Diversified REIT Inc. is a Maryland corporation incorporated on September 28, 2015. As of our taxation year ended December 31, 2017, we believe that we have operated in a manner that qualifies us as a real estate investment trust (REIT) , and we have elected to be taxed as a REIT for federal income tax purposes. Our company is the general partner of Medalist Diversified Holdings, LP which was formed as a Delaware limited partnership on September 29, 2015. Our company was formed to acquire, reposition, renovate, lease and manage income-generating properties, with a primary focus on (i) commercial properties, including flex-industrial and retail properties, (ii) multi-family residential properties, and (iii) limited service hotel properties in the secondary and tertiary markets in the southeast portion of the United States, with an expected concentration in Virginia, North Carolina, South Carolina, Georgia, Florida and Alabama.

About Apartment Income REIT

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AIR is a real estate investment trust focused on owning and managing quality apartment communities located in the largest markets in the United States. AIR is one of the nation’s largest apartment owners and operators, with 99 communities in 12 states and the District of Columbia. Common stock of AIR trades on the New York Stock Exchange under the symbol AIRC and is included in the S&P 400 Index. For more information about AIR, please visit our website at www.aircommunities.com .



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