Innovative Industrial Properties (NYSE:IIPR – Get Free Report) and Alexander’s (NYSE:ALX – Get Free Report) are both small-cap finance companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, valuation, profitability, risk, analyst recommendations, dividends and institutional ownership.
Institutional and Insider Ownership
70.6% of Innovative Industrial Properties shares are owned by institutional investors. Comparatively, 32.0% of Alexander’s shares are owned by institutional investors. 2.0% of Innovative Industrial Properties shares are owned by insiders. Comparatively, 26.3% of Alexander’s shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Analyst Recommendations
This is a summary of current recommendations for Innovative Industrial Properties and Alexander’s, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Innovative Industrial Properties | 3 | 2 | 1 | 0 | 1.67 |
| Alexander’s | 0 | 1 | 0 | 1 | 3.00 |
Earnings and Valuation
This table compares Innovative Industrial Properties and Alexander’s”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Innovative Industrial Properties | $308.52 million | 4.21 | $161.66 million | $4.22 | 10.98 |
| Alexander’s | $213.18 million | 5.57 | $28.22 million | $5.49 | 42.31 |
Innovative Industrial Properties has higher revenue and earnings than Alexander’s. Innovative Industrial Properties is trading at a lower price-to-earnings ratio than Alexander’s, indicating that it is currently the more affordable of the two stocks.
Dividends
Innovative Industrial Properties pays an annual dividend of $7.60 per share and has a dividend yield of 16.4%. Alexander’s pays an annual dividend of $18.00 per share and has a dividend yield of 7.7%. 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. Alexander’s pays out 327.9% 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 and Alexander’s has increased its dividend for 1 consecutive years. Innovative Industrial Properties is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Volatility and Risk
Innovative Industrial Properties has a beta of 1.47, indicating that its share price is 47% more volatile than the S&P 500. Comparatively, Alexander’s has a beta of 0.82, indicating that its share price is 18% less volatile than the S&P 500.
Profitability
This table compares Innovative Industrial Properties and Alexander’s’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Innovative Industrial Properties | 45.80% | 6.77% | 5.40% |
| Alexander’s | 13.24% | 20.68% | 2.23% |
Summary
Innovative Industrial Properties beats Alexander’s on 11 of the 18 factors compared between the two stocks.
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.
About Alexander’s
Alexander’s, Inc. (NYSE: ALX) is a real estate investment trust (REIT), incorporated in Delaware, engaged in leasing, managing, developing and redeveloping its properties. All references to we, us, our, Company and Alexander’s refer to Alexander’s, Inc. and its consolidated subsidiaries. We are managed by, and our properties are leased and developed by, Vornado Realty Trust (Vornado) (NYSE: VNO). We have five properties in New York City.
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