Peakstone Realty Trust (NYSE:PKST – Get Free Report) and Innovative Industrial Properties (NYSE:IIPR – Get Free Report) are both small-cap finance companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, analyst recommendations, institutional ownership, risk, valuation, dividends and profitability.
Dividends
Peakstone Realty Trust pays an annual dividend of $0.90 per share and has a dividend yield of 7.2%. Innovative Industrial Properties pays an annual dividend of $7.60 per share and has a dividend yield of 14.4%. Peakstone Realty Trust pays out -10.1% of its earnings in the form of a dividend. Innovative Industrial Properties pays out 164.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Peakstone Realty Trust has raised its dividend for 1 consecutive years and Innovative Industrial Properties has raised 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.
Risk and Volatility
Peakstone Realty Trust has a beta of 1.76, meaning that its share price is 76% more volatile than the S&P 500. Comparatively, Innovative Industrial Properties has a beta of 1.65, meaning that its share price is 65% more volatile than the S&P 500.
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Peakstone Realty Trust | $228.07 million | 2.02 | -$10.43 million | ($8.89) | -1.41 |
| Innovative Industrial Properties | $308.52 million | 4.79 | $161.66 million | $4.62 | 11.43 |
Innovative Industrial Properties has higher revenue and earnings than Peakstone Realty Trust. Peakstone Realty Trust 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.
Analyst Ratings
This is a summary of recent recommendations for Peakstone Realty Trust and Innovative Industrial Properties, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Peakstone Realty Trust | 0 | 1 | 1 | 0 | 2.50 |
| Innovative Industrial Properties | 2 | 5 | 1 | 1 | 2.11 |
Peakstone Realty Trust currently has a consensus price target of $16.00, indicating a potential upside of 27.80%. Innovative Industrial Properties has a consensus price target of $78.6667, indicating a potential upside of 49.02%. Given Innovative Industrial Properties’ higher probable upside, analysts plainly believe Innovative Industrial Properties is more favorable than Peakstone Realty Trust.
Profitability
This table compares Peakstone Realty Trust and Innovative Industrial Properties’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Peakstone Realty Trust | -145.77% | -31.54% | -13.18% |
| Innovative Industrial Properties | 47.71% | 7.26% | 5.83% |
Insider and Institutional Ownership
39.0% of Peakstone Realty Trust shares are held by institutional investors. Comparatively, 70.6% of Innovative Industrial Properties shares are held by institutional investors. 0.8% of Peakstone Realty Trust shares are held by insiders. Comparatively, 2.0% of Innovative Industrial Properties shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Summary
Innovative Industrial Properties beats Peakstone Realty Trust on 14 of the 17 factors compared between the two stocks.
About Peakstone Realty Trust
Peakstone Realty Trust (NYSE: PKST) is an internally managed, real estate investment trust (REIT) that owns and operates a high-quality, newer-vintage portfolio of predominantly single-tenant industrial and office properties. These assets are generally leased to creditworthy tenants under long-term net lease agreements with contractual rent escalations. As of March 31, 2023, Peakstone's wholly-owned portfolio consists of 19 million square feet across 24 states in primarily high-growth, strategic coastal and sunbelt markets.
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.
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