Contrasting Anworth Mortgage Asset (ANH) & Innovative Industrial Properties (IIPR)

Anworth Mortgage Asset (NYSE: ANH) and Innovative Industrial Properties (NYSE:IIPR) are both small-cap financials companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, dividends, profitability, earnings, analyst recommendations, valuation and institutional ownership.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Anworth Mortgage Asset and Innovative Industrial Properties, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Anworth Mortgage Asset 0 1 0 0 2.00
Innovative Industrial Properties 0 0 1 0 3.00

Anworth Mortgage Asset presently has a consensus price target of $6.00, suggesting a potential upside of 12.99%. Innovative Industrial Properties has a consensus price target of $23.00, suggesting a potential downside of 28.30%. Given Anworth Mortgage Asset’s higher possible upside, equities analysts plainly believe Anworth Mortgage Asset is more favorable than Innovative Industrial Properties.

Earnings and Valuation

This table compares Anworth Mortgage Asset and Innovative Industrial Properties’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Anworth Mortgage Asset $52.04 million 10.01 $22.49 million $0.44 12.07
Innovative Industrial Properties $320,000.00 350.88 -$4.39 million ($0.63) -50.92

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

Insider & Institutional Ownership

56.3% of Anworth Mortgage Asset shares are owned by institutional investors. Comparatively, 8.6% of Innovative Industrial Properties shares are owned by institutional investors. 1.9% of Anworth Mortgage Asset shares are owned by insiders. Comparatively, 10.6% 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 is poised for long-term growth.

Dividends

Anworth Mortgage Asset pays an annual dividend of $0.60 per share and has a dividend yield of 11.3%. Innovative Industrial Properties pays an annual dividend of $1.00 per share and has a dividend yield of 3.1%. Anworth Mortgage Asset pays out 136.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Innovative Industrial Properties pays out -158.7% of its earnings in the form of a dividend. Innovative Industrial Properties has raised its dividend for 2 consecutive years.

Profitability

This table compares Anworth Mortgage Asset and Innovative Industrial Properties’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Anworth Mortgage Asset 37.57% 8.84% 0.95%
Innovative Industrial Properties -108.39% -8.09% -7.47%

Summary

Anworth Mortgage Asset beats Innovative Industrial Properties on 10 of the 16 factors compared between the two stocks.

About Anworth Mortgage Asset

Anworth Mortgage Asset Corporation is a real estate investment trust (REIT). The Company’s investment objective is to provide risk-adjusted total returns to its stockholders over the long-term primarily through dividends and secondarily through capital appreciation. Its strategy is to invest in residential mortgage-backed securities (MBS) (both Agency MBS and Non-Agency MBS), residential mortgage loans and residential rental properties. Its principal business objective is to generate net income for distribution to its stockholders primarily based upon the spread between the interest income on its mortgage assets and its borrowing costs to finance its acquisition of those assets. The Company finances residential mortgage loans through asset-backed securities, which are issued by the consolidated securitization trusts. The Company is engaged in investing in, financing and managing a portfolio of residential mortgage-backed securities and residential mortgage loans.

About Innovative Industrial Properties

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.

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