Analyzing Innovative Industrial Properties (NYSE:IIPR) & SEGRO (OTCMKTS:SEGXF)

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

Analyst Recommendations

This is a summary of current ratings and price targets for Innovative Industrial Properties and SEGRO, as reported by MarketBeat.

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

Innovative Industrial Properties currently has a consensus price target of $45.00, indicating a potential downside of 15.09%. Given Innovative Industrial Properties’ stronger consensus rating and higher possible upside, analysts clearly believe Innovative Industrial Properties is more favorable than SEGRO.

Insider & Institutional Ownership

70.6% of Innovative Industrial Properties shares are held by institutional investors. 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.

Volatility & Risk

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

Earnings & Valuation

This table compares Innovative Industrial Properties and SEGRO”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Innovative Industrial Properties	$265.95 million	5.61	$118.25 million	$3.92	13.52
SEGRO	$957.24 million	13.67	$726.60 million	N/A	N/A

SEGRO has higher revenue and earnings than Innovative Industrial Properties.

Profitability

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

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

Summary

Innovative Industrial Properties beats SEGRO on 9 of the 13 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 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.