Modiv Industrial (NYSE:MDV – Get Free Report) and Innovative Industrial Properties (NYSE:IIPR – 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 institutional ownership, earnings, valuation, analyst recommendations, dividends, profitability and risk.
Valuation and Earnings
This table compares Modiv 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 | |
| Modiv Industrial | $46.16 million | 4.04 | $1.07 million | $0.36 | 50.14 |
| Innovative Industrial Properties | $265.95 million | 5.90 | $118.25 million | $4.41 | 12.91 |
Risk & Volatility
Modiv Industrial has a beta of -0.07, indicating that its share price is 107% less volatile than the S&P 500. Comparatively, Innovative Industrial Properties has a beta of 1.38, indicating that its share price is 38% more volatile than the S&P 500.
Dividends
Modiv Industrial pays an annual dividend of $1.20 per share and has a dividend yield of 6.6%. Innovative Industrial Properties pays an annual dividend of $7.60 per share and has a dividend yield of 13.3%. 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 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 has raised its dividend for 3 consecutive years and 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
8.2% of Modiv Industrial shares are owned by institutional investors. Comparatively, 70.6% of Innovative Industrial Properties shares are owned by institutional investors. 2.8% of Modiv Industrial shares are owned by insiders. Comparatively, 2.3% of Innovative Industrial Properties shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Analyst Recommendations
This is a breakdown of recent recommendations and price targets for Modiv Industrial and Innovative Industrial Properties, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Modiv Industrial | 0 | 6 | 0 | 0 | 2.00 |
| Innovative Industrial Properties | 1 | 3 | 0 | 0 | 1.75 |
Modiv Industrial presently has a consensus price target of $18.50, indicating a potential upside of 2.49%. Innovative Industrial Properties has a consensus price target of $48.00, indicating a potential downside of 15.70%. Given Modiv Industrial’s stronger consensus rating and higher probable upside, equities analysts clearly believe Modiv Industrial is more favorable than Innovative Industrial Properties.
Profitability
This table compares Modiv Industrial and Innovative Industrial Properties’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Modiv Industrial | 16.35% | 3.75% | 1.55% |
| Innovative Industrial Properties | 52.27% | 7.73% | 5.69% |
Summary
Innovative Industrial Properties beats Modiv Industrial on 12 of the 16 factors compared between the two stocks.
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.
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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