Head-To-Head Review: Innovative Industrial Properties (IIPR) versus Jernigan Capital (JCAP)

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

Dividends

Innovative Industrial Properties pays an annual dividend of $1.00 per share and has a dividend yield of 3.9%. Jernigan Capital pays an annual dividend of $1.40 per share and has a dividend yield of 8.2%. Innovative Industrial Properties pays out -33.1% of its earnings in the form of a dividend. Jernigan Capital pays out 97.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Insider and Institutional Ownership

4.7% of Innovative Industrial Properties shares are held by institutional investors. Comparatively, 69.4% of Jernigan Capital shares are held by institutional investors. 10.6% of Innovative Industrial Properties shares are held by company insiders. Comparatively, 3.2% of Jernigan Capital shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Earnings & Valuation

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Innovative Industrial Properties $320,000.00 509.99 -$4.39 million ($3.02) -8.50
Jernigan Capital $6.53 million 37.41 $16.01 million $1.44 11.89

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

Profitability

This table compares Innovative Industrial Properties and Jernigan Capital’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%
Jernigan Capital 151.13% 7.44% 6.49%

Analyst Recommendations

This is a summary of current recommendations and price targets for Innovative Industrial Properties and Jernigan Capital, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Innovative Industrial Properties 0 0 1 0 3.00
Jernigan Capital 0 1 5 0 2.83

Innovative Industrial Properties currently has a consensus price target of $34.00, indicating a potential upside of 32.50%. Jernigan Capital has a consensus price target of $24.40, indicating a potential upside of 42.52%. Given Jernigan Capital’s higher probable upside, analysts clearly believe Jernigan Capital is more favorable than Innovative Industrial Properties.

Summary

Jernigan Capital beats Innovative Industrial Properties on 11 of the 15 factors compared between the two stocks.

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.

About Jernigan Capital

Jernigan Capital, Inc. is a commercial real estate finance company. The Company provides capital to private developers, owners and operators of self-storage facilities. It intends to generate long-term returns on development property investments through a fixed rate of interest on its invested capital together with an interest in the positive cash flows of the self-storage development from operations, sales and/or refinancings. It generates cash flows from construction loans and operating property loans in the form of a fixed interest rate and origination fees. It originates various loans, such as bridge loans and credit lines. It has development property investments in Orlando, Atlanta, Tampa, Chicago and Miami. Its operating property loans are located in New Orleans, Newark, Nashville, Sacramento and Chicago. The Company conducts its investment activities through Jernigan Capital Operating Company, LLC. The Company is externally managed and advised by JCap Advisors, LLC.

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