Stag Industrial (NYSE:STAG – Get Free Report) and Innovative Industrial Properties (NYSE:IIPR – Get Free Report) are both real estate companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, profitability, valuation, institutional ownership, earnings, dividends and risk.
Institutional & Insider Ownership
88.7% of Stag Industrial shares are held by institutional investors. Comparatively, 70.6% of Innovative Industrial Properties shares are held by institutional investors. 1.1% of Stag Industrial shares are held by company insiders. Comparatively, 2.3% of Innovative Industrial Properties shares are held 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.
Valuation & Earnings
This table compares Stag Industrial and Innovative Industrial Properties”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Stag Industrial | $845.18 million | 8.58 | $273.52 million | $1.30 | 28.92 |
| Innovative Industrial Properties | $265.95 million | 5.77 | $118.25 million | $4.41 | 12.62 |
Stag Industrial has higher revenue and earnings than Innovative Industrial Properties. Innovative Industrial Properties is trading at a lower price-to-earnings ratio than Stag Industrial, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of recent ratings and price targets for Stag Industrial and Innovative Industrial Properties, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Stag Industrial | 1 | 5 | 4 | 0 | 2.30 |
| Innovative Industrial Properties | 1 | 3 | 0 | 0 | 1.75 |
Stag Industrial currently has a consensus price target of $40.70, indicating a potential upside of 8.26%. Innovative Industrial Properties has a consensus price target of $48.00, indicating a potential downside of 13.72%. Given Stag Industrial’s stronger consensus rating and higher possible upside, research analysts clearly believe Stag Industrial is more favorable than Innovative Industrial Properties.
Dividends
Stag Industrial pays an annual dividend of $1.55 per share and has a dividend yield of 4.1%. Innovative Industrial Properties pays an annual dividend of $7.60 per share and has a dividend yield of 13.7%. 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 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 has raised its dividend for 7 consecutive years and Innovative Industrial Properties has raised its dividend for 4 consecutive years.
Profitability
This table compares Stag Industrial and Innovative Industrial Properties’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Stag Industrial | 28.04% | 6.79% | 3.43% |
| Innovative Industrial Properties | 52.27% | 7.73% | 5.69% |
Risk & Volatility
Stag Industrial has a beta of 0.95, suggesting that its share price is 5% less volatile than the S&P 500. Comparatively, Innovative Industrial Properties has a beta of 1.35, suggesting that its share price is 35% more volatile than the S&P 500.
Summary
Stag Industrial beats Innovative Industrial Properties on 10 of the 17 factors compared between the two stocks.
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.
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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