Financial Review: Medalist Diversified REIT (NASDAQ:MDRR) & SITE Centers (NYSE:SITC)


SITE Centers (NYSE: SITCGet a rating) and Medalist Diversified REIT (NASDAQ: MDRRGet a rating) are both finance companies, but which is the better stock? We’ll compare the two companies based on their dividend strength, profitability, earnings, valuation, analyst recommendations, risk, and institutional ownership.

Dividends

SITE Centers pays an annual dividend of $0.52 per share and has a dividend yield of 3.4%. Medalist Diversified REIT pays an annual dividend of $0.08 per share and has a dividend yield of 8.5%. SITE Centers pays out 106.1% of its earnings as a dividend, suggesting it may not have enough earnings to cover its dividend payment in the future. Medalist Diversified REIT distributes -47.1% of its earnings as a dividend. SITE Centers has increased its dividend for 2 consecutive years. Medalist Diversified REIT is clearly the best dividend stock, given its higher yield and lower payout ratio.

Analyst Notes

This is a summary of current recommendations and price targets for SITE Centers and Medalist Diversified REITs, as reported by MarketBeat.

Sales Ratings Hold odds Buy reviews Strong buy odds Rating
SITE Centers 0 1 4 0 2.80
Medal-winning diversified REIT 0 0 0 0 N / A

SITE Centers currently has a consensus target price of $18.20, suggesting a potential upside of 20.29%. Given the likely higher upside of SITE Centers, research analysts clearly believe that SITE Centers is more favorable than Medalist Diversified REIT.

Insider and Institutional Ownership

88.3% of SITE Centers shares are held by institutional investors. By comparison, 19.0% of the shares of Medalist Diversified REIT are held by institutional investors. 9.8% of the shares of SITE Centers are held by insiders of the company. By comparison, 2.6% of the shares of Medalist Diversified REIT are held by insiders of the company. Strong institutional ownership indicates that endowments, large fund managers, and hedge funds believe a stock will outperform the market over the long term.

Benefits and evaluation

This table compares the revenue, earnings per share and valuation of SITE Centers and Medalist Diversified REIT.

Gross revenue Price/sales ratio Net revenue Earnings per share Price/earnings ratio
SITE Centers $492.34 million 6.57 $124.93 million $0.49 30.88
Medal-winning diversified REIT $11.47 million 1.43 -4.36 million dollars ($0.17) -5.53

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

Volatility and risk

SITE Centers has a beta of 1.53, suggesting that its stock price is 53% more volatile than the S&P 500. Comparatively, Medalist Diversified REIT has a beta of 0.77, suggesting that its stock price stock is 23% less volatile than the S&P 500.

Profitability

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

Net margins Return on equity return on assets
SITE Centers 24.41% 6.61% 3.05%
Medal-winning diversified REIT -26.28% -13.03% -3.31%

Summary

SITE Centers beats Medalist Diversified REIT on 14 out of 16 factors compared between the two stocks.

About SITE Centers (Get a rating)

SITE Centers owns and operates outdoor shopping centers that provide a highly appealing shopping experience and array of merchandise for business partners and consumers. The Company is a self-administered, self-managed REIT operating as a fully integrated real estate company and is listed on the New York Stock Exchange under the symbol SITC.

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.



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