Prologis (NYSE:PLD – Get Free Report) and Innovative Industrial Properties (NYSE:IIPR – Get Free Report) are both real estate companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, risk, institutional ownership, analyst recommendations, earnings, valuation and profitability.
Dividends
Prologis pays an annual dividend of $4.28 per share and has a dividend yield of 3.1%. Innovative Industrial Properties pays an annual dividend of $7.60 per share and has a dividend yield of 13.3%. Prologis pays out 95.3% 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 pays out 172.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Prologis has raised its dividend for 12 consecutive years and Innovative Industrial Properties has raised its dividend for 4 consecutive years.
Risk and Volatility
Prologis has a beta of 1.31, indicating that its share price is 31% more volatile than the S&P 500. Comparatively, Innovative Industrial Properties has a beta of 1.38, indicating that its share price is 38% more volatile than the S&P 500.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Prologis | 0 | 7 | 16 | 0 | 2.70 |
| Innovative Industrial Properties | 1 | 3 | 0 | 0 | 1.75 |
Prologis currently has a consensus price target of $154.57, suggesting a potential upside of 11.42%. Innovative Industrial Properties has a consensus price target of $48.00, suggesting a potential downside of 16.14%. Given Prologis’ stronger consensus rating and higher possible upside, equities research analysts plainly believe Prologis is more favorable than Innovative Industrial Properties.
Earnings & Valuation
This table compares Prologis and Innovative Industrial Properties”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Prologis | $8.79 billion | 14.73 | $3.33 billion | $4.49 | 30.90 |
| Innovative Industrial Properties | $265.95 million | 5.93 | $118.25 million | $4.41 | 12.98 |
Prologis has higher revenue and earnings than Innovative Industrial Properties. Innovative Industrial Properties is trading at a lower price-to-earnings ratio than Prologis, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
93.5% of Prologis shares are owned by institutional investors. Comparatively, 70.6% of Innovative Industrial Properties shares are owned by institutional investors. 0.5% of Prologis shares are owned by insiders. Comparatively, 2.3% of Innovative Industrial Properties shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Profitability
This table compares Prologis and Innovative Industrial Properties’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Prologis | 45.79% | 7.29% | 4.25% |
| Innovative Industrial Properties | 52.27% | 7.73% | 5.69% |
Summary
Prologis beats Innovative Industrial Properties on 11 of the 17 factors compared between the two stocks.
About Prologis
Prologis, Inc. is the global leader in logistics real estate with a focus on high-barrier, high-growth markets. At March 31, 2024, the company owned or had investments in, on a wholly owned basis or through co-investment ventures, properties and development projects expected to total approximately 1.2 billion square feet (115 million square meters) in 19 countries. Prologis leases modern logistics facilities to a diverse base of approximately 6,700 customers principally across two major categories: business-to-business and retail/online fulfillment.
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.
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