Monmouth Real Estate Investment Corporation (NYSE: MNR) and Cole Real Estate Investments (NYSE:COLE) are both commercial reits – nec companies, but which is the superior stock? We will contrast the two companies based on the strength of their dividends, risk, earnings, profitability, valuation, analyst recommendations and institutional ownership.

Earnings & Valuation

This table compares Monmouth Real Estate Investment Corporation and Cole Real Estate Investments’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Monmouth Real Estate Investment Corporation $81.59 million 15.39 $32.49 million $0.30 57.67
Cole Real Estate Investments N/A N/A N/A $0.20 N/A

Monmouth Real Estate Investment Corporation has higher revenue and earnings than Cole Real Estate Investments. Cole Real Estate Investments is trading at a lower price-to-earnings ratio than Monmouth Real Estate Investment Corporation, indicating that it is currently the more affordable of the two stocks.

Dividends

Monmouth Real Estate Investment Corporation pays an annual dividend of $0.68 per share and has a dividend yield of 3.9%. Cole Real Estate Investments does not pay a dividend. Monmouth Real Estate Investment Corporation pays out 226.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Monmouth Real Estate Investment Corporation has raised its dividend for 2 consecutive years.

Profitability

This table compares Monmouth Real Estate Investment Corporation and Cole Real Estate Investments’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Monmouth Real Estate Investment Corporation 32.02% 7.91% 2.69%
Cole Real Estate Investments N/A N/A N/A

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Monmouth Real Estate Investment Corporation and Cole Real Estate Investments, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Monmouth Real Estate Investment Corporation 0 1 4 0 2.80
Cole Real Estate Investments 0 0 0 0 N/A

Monmouth Real Estate Investment Corporation currently has a consensus target price of $16.75, suggesting a potential downside of 3.18%.

Institutional & Insider Ownership

62.2% of Monmouth Real Estate Investment Corporation shares are owned by institutional investors. 5.3% of Monmouth Real Estate Investment Corporation shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

Monmouth Real Estate Investment Corporation beats Cole Real Estate Investments on 10 of the 11 factors compared between the two stocks.

About Monmouth Real Estate Investment Corporation

Monmouth Real Estate Investment Corporation is a real estate investment trust (REIT). The Company’s primary business is the ownership of real estate. Its investment focus is to own single tenant, industrial buildings and leased to investment-grade tenants or their subsidiaries on long-term net leases. In addition, the Company owns a portfolio of REIT investment securities. Its assets are situated near airports, transportation hubs and manufacturing plants. The Company’s property portfolio consists of approximately 109 properties located across 30 states, containing a total of approximately 18.9 million rentable square feet.

About Cole Real Estate Investments

Cole Real Estate Investments, Inc. is a real estate investment trust (REIT). The Company operates in two segments: Real Estate Investment (REI) and Private Capital Management (PCM). The Company’s REI segment is conducted through Cole REIT III Operating Partnership, LP (CCPT III OP). The Company’s PCM segment is conducted through Cole Capital Advisors, Inc. (CCA). Through its REI segment, the Company acquires and operates a diverse portfolio of core commercial real estate investments primarily consisting of necessity retail properties located throughout the United States, including United States protectorates. The Company’s PCM segment is responsible for managing the Managed REITs’ affairs on a day-to-day basis, identifying and making acquisitions and investments on the Managed REITs’ behalf. In February 2014, American Realty Capital Properties Inc purchased Cole Real Estate Investments, Inc.

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