Head to Head Review: Summit Industrial Income REIT (OTCMKTS:SMMCF) & Jernigan Capital (NASDAQ:JCAP)

Summit Industrial Income REIT (OTCMKTS:SMMCF) and Jernigan Capital (NASDAQ:JCAP) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their profitability, dividends, analyst recommendations, earnings, risk, valuation and institutional ownership.

Dividends

Summit Industrial Income REIT pays an annual dividend of $0.21 per share and has a dividend yield of 1.2%. Jernigan Capital pays an annual dividend of $0.96 per share and has a dividend yield of 6.0%. Summit Industrial Income REIT pays out 35.9% of its earnings in the form of a dividend. Jernigan Capital pays out 37.1% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Analyst Recommendations

This is a summary of recent recommendations for Summit Industrial Income REIT and Jernigan Capital, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Summit Industrial Income REIT	0	0	0	0	0.00
Jernigan Capital	1	1	5	1	2.75

Jernigan Capital has a consensus price target of $25.20, suggesting a potential upside of 57.21%. Given Jernigan Capital’s stronger consensus rating and higher probable upside, analysts plainly believe Jernigan Capital is more favorable than Summit Industrial Income REIT.

Insider and Institutional Ownership

0.1% of Summit Industrial Income REIT shares are held by institutional investors. 2.9% of Jernigan Capital shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Summit Industrial Income REIT and Jernigan Capital’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Summit Industrial Income REIT	N/A	N/A	N/A
Jernigan Capital	25.42%	38.63%	8.82%

Valuation & Earnings

This table compares Summit Industrial Income REIT and Jernigan Capital”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Summit Industrial Income REIT	N/A	N/A	N/A	$0.59	29.50
Jernigan Capital	$613.29 million	1.45	$187.96 million	$2.59	6.19

Jernigan Capital has higher revenue and earnings than Summit Industrial Income REIT. Jernigan Capital is trading at a lower price-to-earnings ratio than Summit Industrial Income REIT, indicating that it is currently the more affordable of the two stocks.

Summary

Jernigan Capital beats Summit Industrial Income REIT on 11 of the 14 factors compared between the two stocks.

About Summit Industrial Income REIT

Summit Industrial Income REIT is an open-ended mutual fund trust, which engages in growing and managing a portfolio of light industrial properties. Its properties are located in Ontario, Quebec, Alberta, British Columbia, and New Brunswick. The company was founded on November 24, 1998 and is headquartered in Markham, Canada.

About Jernigan Capital

Jernigan Capital is a New York Stock Exchange-listed real estate investment trust (NYSE: JCAP) that provides debt and equity capital to private developers, owners and operators of self-storage facilities with a view to eventual outright ownership of facilities the Company finances. The Company's mission is to maximize shareholder value by accumulating a multi-billion dollar investment portfolio consisting of the newest, most attractive and best located self-storage facilities in the United States through a talented and experienced team demonstrating the highest levels of integrity, dedication, excellence and community.