Critical Comparison: Innovative Industrial Properties (NYSE:IIPR) & Healthpeak Properties (NYSE:DOC)

Healthpeak Properties (NYSE:DOC) and Innovative Industrial Properties (NYSE:IIPR) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, risk, analyst recommendations, earnings, valuation, profitability and dividends.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Healthpeak Properties and Innovative Industrial Properties, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Healthpeak Properties	1	6	6	0	2.38
Innovative Industrial Properties	2	3	1	0	1.83

Healthpeak Properties currently has a consensus target price of $19.67, indicating a potential upside of 9.75%. Innovative Industrial Properties has a consensus target price of $68.20, indicating a potential upside of 35.80%. Given Innovative Industrial Properties’ higher possible upside, analysts clearly believe Innovative Industrial Properties is more favorable than Healthpeak Properties.

Volatility and Risk

Healthpeak Properties has a beta of 1.12, indicating that its stock price is 12% more volatile than the S&P 500. Comparatively, Innovative Industrial Properties has a beta of 1.46, indicating that its stock price is 46% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Healthpeak Properties	-1.36%	-0.44%	-0.19%
Innovative Industrial Properties	45.80%	6.77%	5.40%

Earnings & Valuation

This table compares Healthpeak Properties and Innovative Industrial Properties”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Healthpeak Properties	$2.70 billion	4.61	$243.14 million	($0.05)	-358.40
Innovative Industrial Properties	$308.52 million	4.56	$161.66 million	$4.22	11.90

Healthpeak Properties has higher revenue and earnings than Innovative Industrial Properties. Healthpeak Properties 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.

Dividends

Healthpeak Properties pays an annual dividend of $1.22 per share and has a dividend yield of 6.8%. Innovative Industrial Properties pays an annual dividend of $7.60 per share and has a dividend yield of 15.1%. Healthpeak Properties pays out -2,440.0% of its earnings in the form of a dividend. Innovative Industrial Properties pays out 180.1% 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 has increased 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.

Institutional & Insider Ownership

93.6% of Healthpeak Properties shares are held by institutional investors. Comparatively, 70.6% of Innovative Industrial Properties shares are held by institutional investors. 0.2% of Healthpeak Properties shares are held by company insiders. Comparatively, 2.0% of Innovative Industrial Properties shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

Innovative Industrial Properties beats Healthpeak Properties on 10 of the 17 factors compared between the two stocks.

About Healthpeak Properties

Healthpeak Properties, Inc. is a fully integrated real estate investment trust (REIT) and S&P 500 company. Healthpeak owns, operates, and develops high-quality real estate for healthcare discovery and delivery.

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.