Five Point (NYSE: IIPR) and Innovative Industrial Properties (NYSE:IIPR) are both small-cap finance companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, risk, earnings, profitability, institutional ownership, dividends and analyst recommendations.
Innovative Industrial Properties pays an annual dividend of $1.00 per share and has a dividend yield of 2.8%. Five Point does not pay a dividend. Innovative Industrial Properties pays out 149.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
This is a summary of current ratings for Five Point and Innovative Industrial Properties, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Innovative Industrial Properties||0||0||1||0||3.00|
Five Point currently has a consensus price target of $13.50, indicating a potential upside of 25.35%. Innovative Industrial Properties has a consensus price target of $41.00, indicating a potential upside of 13.07%. Given Five Point’s higher probable upside, research analysts plainly believe Five Point is more favorable than Innovative Industrial Properties.
Valuation and Earnings
This table compares Five Point and Innovative Industrial Properties’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Five Point||$139.43 million||11.25||$73.23 million||($0.61)||-17.66|
|Innovative Industrial Properties||$6.42 million||38.35||-$70,000.00||$0.67||54.12|
Five Point has higher revenue and earnings than Innovative Industrial Properties. Five Point 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.
This table compares Five Point and Innovative Industrial Properties’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Innovative Industrial Properties||31.15%||3.13%||2.63%|
Volatility & Risk
Five Point has a beta of -0.24, meaning that its stock price is 124% less volatile than the S&P 500. Comparatively, Innovative Industrial Properties has a beta of -1.24, meaning that its stock price is 224% less volatile than the S&P 500.
Insider & Institutional Ownership
38.1% of Five Point shares are owned by institutional investors. Comparatively, 52.2% of Innovative Industrial Properties shares are owned by institutional investors. 6.2% 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 stock will outperform the market over the long term.
Innovative Industrial Properties beats Five Point on 8 of the 14 factors compared between the two stocks.
Five Point Company Profile
Five Point Holdings, LLC, through its subsidiary, Five Point Operating Company, LP, plans, develops, and owns mixed-use communities in California, the United States. It sells residential and commercial land sites to homebuilders, commercial developers, and commercial buyers. The company was formerly known as Newhall Holding Company, LLC and changed its name to Five Point Holdings, LLC in May 2016. Five Point Holdings, LLC was founded in 2009 and is based in Aliso Viejo, California.
Innovative Industrial Properties Company Profile
Innovative Industrial Properties, Inc. is a self-advised Maryland corporation focused on the acquisition, ownership and management of specialized industrial properties leased to experienced, state-licensed operators for their regulated medical-use 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. Additional information is available at www.innovativeindustrialproperties.com.
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