Innovative Industrial Properties (NYSE:IIPR – Get Free Report) and Industrial Logistics Properties Trust (NASDAQ:ILPT – Get Free Report) are both small-cap real estate companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, risk, profitability, dividends, valuation, institutional ownership and earnings.
Volatility and 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, Industrial Logistics Properties Trust has a beta of 2.49, meaning that its share price is 149% more volatile than the S&P 500.
Analyst Ratings
This is a breakdown of recent ratings and recommmendations for Innovative Industrial Properties and Industrial Logistics Properties Trust, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Innovative Industrial Properties | 1 | 3 | 0 | 0 | 1.75 |
| Industrial Logistics Properties Trust | 1 | 1 | 1 | 0 | 2.00 |
Insider and Institutional Ownership
70.6% of Innovative Industrial Properties shares are owned by institutional investors. Comparatively, 49.1% of Industrial Logistics Properties Trust shares are owned by institutional investors. 2.3% of Innovative Industrial Properties shares are owned by company insiders. Comparatively, 2.3% of Industrial Logistics Properties Trust shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Dividends
Innovative Industrial Properties pays an annual dividend of $7.60 per share and has a dividend yield of 13.3%. Industrial Logistics Properties Trust pays an annual dividend of $0.40 per share and has a dividend yield of 5.0%. 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. Industrial Logistics Properties Trust pays out -55.6% of its earnings in the form of a dividend. Innovative Industrial Properties has increased 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.
Earnings and Valuation
This table compares Innovative Industrial Properties and Industrial Logistics Properties Trust”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 | 5.93 | $118.25 million | $4.41 | 12.97 |
| Industrial Logistics Properties Trust | $448.85 million | 1.19 | -$66.19 million | ($0.72) | -11.07 |
Innovative Industrial Properties has higher earnings, but lower revenue than Industrial Logistics Properties Trust. Industrial Logistics Properties Trust is trading at a lower price-to-earnings ratio than Innovative Industrial Properties, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Innovative Industrial Properties and Industrial Logistics Properties Trust’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% |
| Industrial Logistics Properties Trust | -10.37% | -5.34% | -0.91% |
Summary
Innovative Industrial Properties beats Industrial Logistics Properties Trust on 10 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 Industrial Logistics Properties Trust
Industrial Logistics Properties Trust (Nasdaq: ILPT) is a real estate investment trust, or REIT, focused on owning and leasing high quality distribution and logistics properties. As of December 31, 2023, ILPT's portfolio consisted of 411 properties containing approximately 60 million rentable square feet located in 39 states. Approximately 77% of ILPT's annualized rental revenues as of December 31, 2023 are derived from investment grade tenants, tenants that are subsidiaries of investment grade rated entities or Hawaii land leases. ILPT is managed by The RMR Group (Nasdaq: RMR), a leading U.S. alternative asset management company with over $41 billion in assets under management as of December 31, 2023 and more than 35 years of institutional experience in buying, selling, financing and operating commercial real estate. ILPT is headquartered in Newton, MA.
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