Innovative Industrial Properties (NYSE:IIPR – Get Free Report) and Modiv Industrial (NYSE:MDV – Get Free Report) are both small-cap real estate companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, profitability, institutional ownership, dividends, earnings, valuation and risk.
Dividends
Innovative Industrial Properties pays an annual dividend of $7.60 per share and has a dividend yield of 13.3%. Modiv Industrial pays an annual dividend of $1.20 per share and has a dividend yield of 6.6%. 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. Modiv Industrial pays out 333.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Innovative Industrial Properties has increased its dividend for 4 consecutive years and Modiv Industrial has increased its dividend for 3 consecutive years. Innovative Industrial Properties is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Earnings and Valuation
This table compares Innovative Industrial Properties and Modiv Industrial”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Innovative Industrial Properties | $263.65 million | 5.95 | $118.25 million | $4.41 | 12.91 |
| Modiv Industrial | $46.16 million | 4.04 | $1.07 million | $0.36 | 50.14 |
Innovative Industrial Properties has higher revenue and earnings than Modiv Industrial. Innovative Industrial Properties is trading at a lower price-to-earnings ratio than Modiv Industrial, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
70.6% of Innovative Industrial Properties shares are held by institutional investors. Comparatively, 8.2% of Modiv Industrial shares are held by institutional investors. 2.3% of Innovative Industrial Properties shares are held by insiders. Comparatively, 2.8% of Modiv Industrial shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Volatility and Risk
Innovative Industrial Properties has a beta of 1.38, meaning that its share price is 38% more volatile than the S&P 500. Comparatively, Modiv Industrial has a beta of -0.07, meaning that its share price is 107% less volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of current recommendations and price targets for Innovative Industrial Properties and Modiv 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 |
| Modiv Industrial | 0 | 6 | 0 | 0 | 2.00 |
Innovative Industrial Properties currently has a consensus price target of $48.00, indicating a potential downside of 15.69%. Modiv Industrial has a consensus price target of $18.50, indicating a potential upside of 2.49%. Given Modiv Industrial’s stronger consensus rating and higher possible upside, analysts plainly believe Modiv Industrial is more favorable than Innovative Industrial Properties.
Profitability
This table compares Innovative Industrial Properties and Modiv 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% |
| Modiv Industrial | 16.35% | 3.75% | 1.55% |
Summary
Innovative Industrial Properties beats Modiv Industrial on 12 of the 16 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 Modiv Industrial
Modiv Industrial, Inc. is an internally managed REIT that is focused on single-tenant net-lease industrial manufacturing real estate. The Company actively acquires critical industrial manufacturing properties with long-term leases to tenants that fuel the national economy and strengthen the nation's supply chains.
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