Analyzing Innovative Industrial Properties (IIPR) and Outfront Media (OUT)

Innovative Industrial Properties (NYSE: IIPR) and Outfront Media (NYSE:OUT) are both financials companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, risk, earnings, valuation, analyst recommendations, institutional ownership and profitability.

Insider & Institutional Ownership

8.6% of Innovative Industrial Properties shares are owned by institutional investors. 10.6% of Innovative Industrial Properties shares are owned by company insiders. Comparatively, 0.5% of Outfront Media shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Innovative Industrial Properties and Outfront Media’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Innovative Industrial Properties $320,000.00 350.88 -$4.39 million ($0.63) -50.92
Outfront Media $1.51 billion 2.10 $90.90 million $0.84 27.32

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

Dividends

Innovative Industrial Properties pays an annual dividend of $1.00 per share and has a dividend yield of 3.1%. Outfront Media pays an annual dividend of $1.44 per share and has a dividend yield of 6.3%. Innovative Industrial Properties pays out -158.7% of its earnings in the form of a dividend. Outfront Media pays out 171.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Analyst Ratings

This is a summary of recent recommendations for Innovative Industrial Properties and Outfront Media, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Innovative Industrial Properties 0 0 1 0 3.00
Outfront Media 0 2 4 0 2.67

Innovative Industrial Properties presently has a consensus price target of $23.00, suggesting a potential downside of 28.30%. Outfront Media has a consensus price target of $30.17, suggesting a potential upside of 31.45%. Given Outfront Media’s higher probable upside, analysts plainly believe Outfront Media is more favorable than Innovative Industrial Properties.

Profitability

This table compares Innovative Industrial Properties and Outfront Media’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Innovative Industrial Properties -108.39% -8.09% -7.47%
Outfront Media 7.71% 9.57% 3.12%

Summary

Outfront Media beats Innovative Industrial Properties on 10 of the 15 factors compared between the two stocks.

Innovative Industrial Properties Company Profile

Innovative Industrial Properties, Inc. is focused on the acquisition, ownership and management of specialized industrial properties leased to state-licensed operators for their regulated medical-use cannabis facilities. The Company intends to acquire its properties through sale-leaseback transactions and third-party purchases. It is focused on leasing its properties on a triple-net lease basis, where the tenant is responsible for all aspects of and costs related to the property and its operation during the lease term, including maintenance, taxes and insurance. The Company intends to conduct business in an umbrella partnership real estate investment trust (UPREIT), structure through its operating partnership. The Company’s real estate investments will consist of primarily properties suitable for cultivation and production of medical-use cannabis.

Outfront Media Company Profile

OUTFRONT Media Inc. is a real estate investment trust (REIT), which provides advertising space (displays) on out-of-home advertising structures and sites in the United States and Canada. The Company’s segments are U.S. Media and Other. The U.S. Media segment includes U.S. Billboard and Transit. The Other segment includes International and Sports Marketing. The Company’s inventory consists of billboard displays, which are primarily located on the heavily traveled highways and roadways in Nielsen Designated Market Areas (DMAs), and transit advertising displays operated under multi-year contracts with municipalities in cities across the United States and Canada. The Company also has marketing and multimedia rights agreements with colleges, universities and other educational institutions, which entitle the Company to operate on-campus advertising displays, as well as manage marketing opportunities, media rights and experiential entertainment at sports events.

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