Critical Survey: Medalist Diversified REIT (NASDAQ:MDRR) vs. Retail Opportunity Investments (NASDAQ:ROIC)


Medalist Diversified REIT (NASDAQ:MDRR – Get Rating) and Retail Opportunity Investments (NASDAQ:ROIC – Get Rating) are both finance companies, but which is the better stock? We’ll compare the two companies based on valuation strength, dividends, institutional ownership, profitability, analyst recommendations, earnings and risk.

Dividends

Medalist Diversified REIT pays an annual dividend of $0.08 per share and has a dividend yield of 8.2%. Retail Opportunity Investments pays an annual dividend of $0.52 per share and has a dividend yield of 2.8%. Medalist Diversified REIT distributes -47.1% of its earnings as a dividend. Retail Opportunity Investments pays out 110.6% of its earnings as a dividend, suggesting it may not have enough earnings to cover its dividend payment in the future. Retail Opportunity Investments has increased its dividend for 1 consecutive year. Medalist Diversified REIT is clearly the best dividend stock, given its higher yield and lower payout ratio.

Risk and Volatility

Medalist Diversified REIT has a beta of 0.78, meaning its stock price is 22% less volatile than the S&P 500. Comparatively, Retail Opportunity Investments has a beta of 1.37, meaning its stock price is 37% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of the current recommendations and price targets for Medalist Diversified REIT and Retail Opportunity Investments, as reported by MarketBeat.com.

Sales Ratings Hold odds Buy reviews Strong buy odds Rating
Medal-winning diversified REIT 0 0 0 0 N / A
Retail Opportunity Investments 1 1 1 0 2.00

Retail Opportunity Investments has a consensus price target of $19.00, indicating a potential upside of 3.94%. Given the likely higher upside of Retail Opportunity Investments, analysts clearly believe that Retail Opportunity Investments is more favorable than Medalist Diversified REIT.

Benefits and evaluation

This table compares the revenue, earnings per share and valuation of Medalist Diversified REIT and Retail Opportunity Investments.

Gross revenue Price/sales ratio Net revenue Earnings per share Price/earnings ratio
Medal-winning diversified REIT $11.47 million 1.49 -4.36 million dollars ($0.17) -5.76
Retail Opportunity Investments $284.10 million 7.99 $53.51 million $0.47 38.89

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

Institutional and insider ownership

19.0% of the shares of Medalist Diversified REIT are held by institutional investors. By comparison, 96.2% of the shares of Retail Opportunity Investments are held by institutional investors. 2.6% of the shares of Medalist Diversified REIT are held by insiders of the company. By comparison, 2.8% of the shares of Retail Opportunity Investments are held by insiders of the company. Strong institutional ownership indicates that large fund managers, hedge funds, and endowments believe a stock is poised for long-term growth.

Profitability

This table compares the net margins, return on equity and return on assets of Medalist Diversified REIT and Retail Opportunity Investments.

Net margins Return on equity return on assets
Medal-winning diversified REIT -26.28% -13.03% -3.31%
Retail Opportunity Investments 19.81% 4.26% 1.99%

Summary

Retail Opportunity Investments beats Medalist Diversified REIT on 13 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 tax 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 Investing in Retail Opportunities (Get a rating)

Retail Opportunity Investments Corp. (NASDAQ: ROIC), is a fully integrated, self-managed real estate investment trust (REIT) that specializes in the acquisition, ownership and management of grocery-anchored shopping centers located in densely populated metropolitan markets across the coast west. As of September 30, 2020, ROIC owned 88 shopping centers covering approximately 10.1 million square feet. ROIC is the largest mall REIT anchored in a publicly traded grocery store and focused exclusively on the West Coast. ROIC is a member of the S&P SmallCap 600 Index and has investment grade corporate debt ratings from Moody’s Investor Services, S&P Global Ratings and Fitch Ratings, Inc.



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