Comparing Innovative Industrial Properties (NYSE:IIPR) & COPT Defense Properties (NYSE:CDP)

Innovative Industrial Properties (NYSE:IIPR) and COPT Defense Properties (NYSE:CDP) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, risk, valuation, analyst recommendations, earnings, institutional ownership and profitability.

Dividends

Innovative Industrial Properties pays an annual dividend of $7.60 per share and has a dividend yield of 14.2%. COPT Defense Properties pays an annual dividend of $1.22 per share and has a dividend yield of 4.4%. Innovative Industrial Properties pays out 164.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. COPT Defense Properties pays out 95.3% 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 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.

Insider and Institutional Ownership

70.6% of Innovative Industrial Properties shares are owned by institutional investors. 2.0% of Innovative Industrial Properties shares are owned by company insiders. Comparatively, 1.4% of COPT Defense Properties shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Innovative Industrial Properties and COPT Defense Properties”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Innovative Industrial Properties	$287.88 million	5.21	$161.66 million	$4.62	11.58
COPT Defense Properties	$753.27 million	4.20	$138.93 million	$1.28	21.90

Innovative Industrial Properties has higher earnings, but lower revenue than COPT Defense Properties. Innovative Industrial Properties is trading at a lower price-to-earnings ratio than COPT Defense Properties, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Innovative Industrial Properties and COPT Defense Properties’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Innovative Industrial Properties	47.71%	7.26%	5.83%
COPT Defense Properties	19.23%	9.38%	3.39%

Risk and Volatility

Innovative Industrial Properties has a beta of 1.64, suggesting that its share price is 64% more volatile than the S&P 500. Comparatively, COPT Defense Properties has a beta of 0.94, suggesting that its share price is 6% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and recommmendations for Innovative Industrial Properties and COPT Defense Properties, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Innovative Industrial Properties	3	5	1	1	2.00
COPT Defense Properties	0	2	6	0	2.75

Innovative Industrial Properties presently has a consensus price target of $78.67, suggesting a potential upside of 47.10%. COPT Defense Properties has a consensus price target of $33.57, suggesting a potential upside of 19.77%. Given Innovative Industrial Properties’ higher possible upside, equities research analysts plainly believe Innovative Industrial Properties is more favorable than COPT Defense Properties.

Summary

Innovative Industrial Properties beats COPT Defense Properties on 12 of the 18 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 COPT Defense Properties

COPT Defense Properties is a real estate investment trust. It acquires, develops, manages, sells, and leases out office properties and data centers. The firm operates through the following segments: Defense/Information Technology Locations, Regional Office, Wholesale Data Center, and Other. The company was founded on January 22,1988 and is headquartered in Columbia, MD.