Clipper Realty (NYSE:CLPR – Get Free Report) and Innovative Industrial Properties (NYSE:IIPR – Get Free Report) are both small-cap finance companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, valuation, analyst recommendations, profitability, earnings, dividends and risk.
Valuation & Earnings
This table compares Clipper Realty and Innovative Industrial Properties”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Clipper Realty | $148.77 million | 0.38 | -$2.50 million | ($1.12) | -3.13 |
| Innovative Industrial Properties | $308.52 million | 4.62 | $161.66 million | $4.22 | 12.06 |
Dividends
Clipper Realty pays an annual dividend of $0.38 per share and has a dividend yield of 10.9%. Innovative Industrial Properties pays an annual dividend of $7.60 per share and has a dividend yield of 14.9%. Clipper Realty pays out -33.9% of its earnings in the form of a dividend. Innovative Industrial Properties pays out 180.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Innovative Industrial Properties has raised its dividend for 4 consecutive years. Innovative Industrial Properties is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Profitability
This table compares Clipper Realty and Innovative Industrial Properties’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Clipper Realty | -10.40% | N/A | -1.28% |
| Innovative Industrial Properties | 45.80% | 6.77% | 5.40% |
Analyst Recommendations
This is a summary of current ratings for Clipper Realty and Innovative Industrial Properties, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Clipper Realty | 0 | 1 | 0 | 0 | 2.00 |
| Innovative Industrial Properties | 2 | 3 | 1 | 0 | 1.83 |
Innovative Industrial Properties has a consensus price target of $68.20, suggesting a potential upside of 33.97%. Given Innovative Industrial Properties’ higher probable upside, analysts clearly believe Innovative Industrial Properties is more favorable than Clipper Realty.
Insider & Institutional Ownership
37.6% of Clipper Realty shares are owned by institutional investors. Comparatively, 70.6% of Innovative Industrial Properties shares are owned by institutional investors. 53.0% of Clipper Realty shares are owned by insiders. Comparatively, 2.0% of Innovative Industrial Properties shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Risk & Volatility
Clipper Realty has a beta of 1.01, suggesting that its share price is 1% more volatile than the S&P 500. Comparatively, Innovative Industrial Properties has a beta of 1.5, suggesting that its share price is 50% more volatile than the S&P 500.
Summary
Innovative Industrial Properties beats Clipper Realty on 14 of the 17 factors compared between the two stocks.
About Clipper Realty
Clipper Realty Inc. (NYSE: CLPR) is a self-administered and self-managed real estate company that acquires, owns, manages, operates, and repositions multifamily residential and commercial properties in the New York metropolitan area, with a portfolio in Manhattan and Brooklyn.
About Innovative Industrial Properties
Innovative Industrial Properties, Inc. is a self-advised Maryland corporation focused on the acquisition, ownership and management of specialized properties leased to experienced, state-licensed operators for their regulated cannabis facilities. Innovative Industrial Properties, Inc. has elected to be taxed as a real estate investment trust, commencing with the year ended December 31, 2017.
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