Head-To-Head Analysis: SEGRO (OTCMKTS:SEGXF) & Innovative Industrial Properties (NYSE:IIPR)

SEGRO (OTCMKTS:SEGXF) and Innovative Industrial Properties (NYSE:IIPR) are both finance companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, risk, profitability, valuation, earnings and dividends.

Risk and Volatility

SEGRO has a beta of 1.23, suggesting that its share price is 23% more volatile than the S&P 500. Comparatively, Innovative Industrial Properties has a beta of 1.45, suggesting that its share price is 45% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and price targets for SEGRO and Innovative Industrial Properties, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SEGRO	2	4	1	0	1.86
Innovative Industrial Properties	1	3	0	1	2.20

Innovative Industrial Properties has a consensus target price of $49.00, indicating a potential downside of 7.50%. Given Innovative Industrial Properties’ stronger consensus rating and higher possible upside, analysts plainly believe Innovative Industrial Properties is more favorable than SEGRO.

Earnings & Valuation

This table compares SEGRO 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
SEGRO	$957.24 million	13.21	$726.60 million	N/A	N/A
Innovative Industrial Properties	$265.95 million	5.60	$118.25 million	$3.92	13.51

SEGRO has higher revenue and earnings than Innovative Industrial Properties.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
SEGRO	N/A	N/A	N/A
Innovative Industrial Properties	44.46%	6.43%	5.05%

Institutional and Insider Ownership

70.6% of Innovative Industrial Properties shares are owned by institutional investors. 2.0% of Innovative Industrial Properties shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Innovative Industrial Properties beats SEGRO on 9 of the 13 factors compared between the two stocks.

About SEGRO

SEGRO is a UK Real Estate Investment Trust (REIT), listed on the London Stock Exchange and Euronext Paris, and is a leading owner, manager and developer of modern warehouses and industrial property. It owns or manages 10.8 million square metres of space (116 million square feet) valued at £20.6 billion serving customers from a wide range of industry sectors. Its properties are located in and around major cities and at key transportation hubs in the UK and in seven other European countries. For over 100 years SEGRO has been creating the space that enables extraordinary things to happen. From modern big box warehouses, used primarily for regional, national and international distribution hubs, to urban warehousing (including data centres) located close to major population centres and business districts, it provides high-quality assets that allow its customers to thrive. A commitment to be a force for societal and environmental good is integral to SEGRO’s purpose and strategy. Its Responsible SEGRO framework focuses on three long-term priorities where the company believes it can make the greatest impact: Championing Low-Carbon Growth, Investing in Local Communities and Environments and Nurturing Talent. Striving for the highest standards of innovation, sustainable business practices and enabling economic and societal prosperity underpins SEGRO’s ambition to be the best property company.

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.