Head-To-Head Comparison: Peakstone Realty Trust (NYSE:PKST) & Innovative Industrial Properties (NYSE:IIPR)

Peakstone Realty Trust (NYSE:PKST) and Innovative Industrial Properties (NYSE:IIPR) are both small-cap finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, valuation, institutional ownership, profitability, earnings and dividends.

Institutional & Insider 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 company insiders. Comparatively, 2.0% of Innovative Industrial Properties shares are held 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.

Risk & Volatility

Peakstone Realty Trust has a beta of 1.76, indicating that its stock price is 76% more volatile than the S&P 500. Comparatively, Innovative Industrial Properties has a beta of 1.65, indicating that its stock price is 65% more volatile than the S&P 500.

Dividends

Peakstone Realty Trust pays an annual dividend of $0.90 per share and has a dividend yield of 7.0%. Innovative Industrial Properties pays an annual dividend of $7.60 per share and has a dividend yield of 13.9%. 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 increased its dividend for 1 consecutive years and 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.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations 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 target price of $16.00, indicating a potential upside of 25.16%. Innovative Industrial Properties has a consensus target price of $78.6667, indicating a potential upside of 43.43%. Given Innovative Industrial Properties’ higher probable upside, analysts plainly believe Innovative Industrial Properties is more favorable than Peakstone Realty Trust.

Valuation and Earnings

This table compares Peakstone Realty Trust and Innovative Industrial Properties”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Peakstone Realty Trust	$228.07 million	2.06	-$10.43 million	($8.89)	-1.44
Innovative Industrial Properties	$308.52 million	4.98	$161.66 million	$4.62	11.87

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.

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%

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.