Innovative Industrial Properties (NYSE:IIPR – Get Free Report) and Stag Industrial (NYSE:STAG – Get Free Report) are both real estate companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, dividends, valuation, earnings, risk, analyst recommendations and profitability.
Earnings & Valuation
This table compares Innovative Industrial Properties and Stag Industrial”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Innovative Industrial Properties | $265.95 million | 5.77 | $118.25 million | $4.41 | 12.62 |
| Stag Industrial | $845.18 million | 8.58 | $273.52 million | $1.30 | 28.92 |
Volatility & Risk
Innovative Industrial Properties has a beta of 1.35, meaning that its share price is 35% more volatile than the S&P 500. Comparatively, Stag Industrial has a beta of 0.95, meaning that its share price is 5% less volatile than the S&P 500.
Analyst Ratings
This is a breakdown of recent recommendations and price targets for Innovative Industrial Properties and Stag Industrial, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Innovative Industrial Properties | 1 | 3 | 0 | 0 | 1.75 |
| Stag Industrial | 1 | 5 | 4 | 0 | 2.30 |
Innovative Industrial Properties currently has a consensus price target of $48.00, suggesting a potential downside of 13.72%. Stag Industrial has a consensus price target of $40.70, suggesting a potential upside of 8.26%. Given Stag Industrial’s stronger consensus rating and higher probable upside, analysts plainly believe Stag Industrial is more favorable than Innovative Industrial Properties.
Profitability
This table compares Innovative Industrial Properties and Stag Industrial’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Innovative Industrial Properties | 52.27% | 7.73% | 5.69% |
| Stag Industrial | 28.04% | 6.79% | 3.43% |
Institutional and Insider Ownership
70.6% of Innovative Industrial Properties shares are owned by institutional investors. Comparatively, 88.7% of Stag Industrial shares are owned by institutional investors. 2.3% of Innovative Industrial Properties shares are owned by insiders. Comparatively, 1.1% of Stag Industrial shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Dividends
Innovative Industrial Properties pays an annual dividend of $7.60 per share and has a dividend yield of 13.7%. Stag Industrial pays an annual dividend of $1.55 per share and has a dividend yield of 4.1%. Innovative Industrial Properties pays out 172.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Stag Industrial pays out 119.2% 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 increased its dividend for 4 consecutive years and Stag Industrial has increased its dividend for 7 consecutive years.
Summary
Stag Industrial beats Innovative Industrial Properties on 10 of the 17 factors compared between the two stocks.
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.
About Stag Industrial
STAG Industrial, Inc. is a real estate investment company, which engages in acquiring, owning, and managing single-tenant, industrial real estate assets. It offers industrial real estate operating platform to real estate ownership. The company was founded by Benjamin S. Butcher on July 21, 2010 and is headquartered in Boston, MA.
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