Alexandria Real Estate Equities (NYSE:ARE) & Medalist Diversified REIT (NASDAQ:MDRR) Head-To-Head Review

Alexandria Real Estate Equities (NYSE:ARE) and Medalist Diversified REIT (NASDAQ:MDRR) are both finance companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, valuation, earnings, analyst recommendations, dividends, institutional ownership and risk.

Analyst Ratings

This is a summary of recent ratings for Alexandria Real Estate Equities and Medalist Diversified REIT, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alexandria Real Estate Equities	3	9	5	0	2.12
Medalist Diversified REIT	1	0	0	0	1.00

Alexandria Real Estate Equities presently has a consensus price target of $63.93, suggesting a potential upside of 16.97%. Given Alexandria Real Estate Equities’ stronger consensus rating and higher possible upside, equities analysts clearly believe Alexandria Real Estate Equities is more favorable than Medalist Diversified REIT.

Dividends

Alexandria Real Estate Equities pays an annual dividend of $2.88 per share and has a dividend yield of 5.3%. Medalist Diversified REIT pays an annual dividend of $0.27 per share and has a dividend yield of 2.2%. Alexandria Real Estate Equities pays out -116.6% of its earnings in the form of a dividend. Medalist Diversified REIT pays out -14.9% 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. Alexandria Real Estate Equities has increased its dividend for 15 consecutive years and Medalist Diversified REIT has increased its dividend for 2 consecutive years. Alexandria Real Estate Equities is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Valuation & Earnings

This table compares Alexandria Real Estate Equities and Medalist Diversified REIT”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Alexandria Real Estate Equities	$3.03 billion	3.13	$322.95 million	($2.47)	-22.13
Medalist Diversified REIT	$9.73 million	1.42	$30,000.00	($1.81)	-6.89

Alexandria Real Estate Equities has higher revenue and earnings than Medalist Diversified REIT. Alexandria Real Estate Equities is trading at a lower price-to-earnings ratio than Medalist Diversified REIT, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Alexandria Real Estate Equities and Medalist Diversified REIT’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Alexandria Real Estate Equities	-47.23%	-6.82%	-3.90%
Medalist Diversified REIT	-21.19%	-7.87%	-2.37%

Volatility and Risk

Alexandria Real Estate Equities has a beta of 1.31, meaning that its stock price is 31% more volatile than the S&P 500. Comparatively, Medalist Diversified REIT has a beta of 0.48, meaning that its stock price is 52% less volatile than the S&P 500.

Institutional and Insider Ownership

96.5% of Alexandria Real Estate Equities shares are owned by institutional investors. Comparatively, 17.4% of Medalist Diversified REIT shares are owned by institutional investors. 1.2% of Alexandria Real Estate Equities shares are owned by insiders. Comparatively, 43.8% of Medalist Diversified REIT shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Alexandria Real Estate Equities beats Medalist Diversified REIT on 13 of the 17 factors compared between the two stocks.

About Alexandria Real Estate Equities

Alexandria Real Estate Equities, Inc. (NYSE: ARE), an S&P 500 company, is a best-in-class, mission-driven life science REIT making a positive and lasting impact on the world. As the pioneer of the life science real estate niche since our founding in 1994, Alexandria is the preeminent and longest-tenured owner, operator, and developer of collaborative life science, agtech, and advanced technology mega campuses in AAA innovation cluster locations, including Greater Boston, the San Francisco Bay Area, New York City, San Diego, Seattle, Maryland, and Research Triangle. Alexandria has a total market capitalization of $33.1 billion and an asset base in North America of 73.5 million SF as of December 31, 2023, which includes 42.0 million RSF of operating properties, 5.5 million RSF of Class A/A+ properties undergoing construction and one near-term project expected to commence construction in the next two years, 2.1 million RSF of priority anticipated development and redevelopment projects, and 23.9 million SF of future development projects. Alexandria has a longstanding and proven track record of developing Class A/A+ properties clustered in life science, agtech, and advanced technology mega campuses that provide our innovative tenants with highly dynamic and collaborative environments that enhance their ability to successfully recruit and retain world-class talent and inspire productivity, efficiency, creativity, and success. Alexandria also provides strategic capital to transformative life science, agrifoodtech, climate innovation, and technology companies through our venture capital platform. We believe our unique business model and diligent underwriting ensure a high-quality and diverse tenant base that results in higher occupancy levels, longer lease terms, higher rental income, higher returns, and greater long-term asset value.

About Medalist Diversified REIT

Medalist Diversified REIT Inc. is a Virginia-based real estate investment trust that specializes in acquiring, owning and managing commercial real estate in the Southeast region of the U.S. The Company's strategy is to focus on commercial real estate which is expected to provide an attractive balance of risk and returns. Medalist utilizes a rigorous, consistent and replicable process for sourcing and conducting due diligence of acquisitions.