Contrasting Innovative Industrial Properties (NYSE:IIPR) and Alpine Income Property Trust (NYSE:PINE)

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

Profitability

This table compares Innovative Industrial Properties and Alpine Income Property Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Innovative Industrial Properties	45.58%	6.62%	5.10%
Alpine Income Property Trust	1.09%	0.25%	0.10%

Dividends

Innovative Industrial Properties pays an annual dividend of $7.60 per share and has a dividend yield of 12.6%. Alpine Income Property Trust pays an annual dividend of $1.20 per share and has a dividend yield of 6.0%. Innovative Industrial Properties pays out 194.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Alpine Income Property Trust pays out -1,333.3% of its earnings in the form of a dividend. Innovative Industrial Properties has increased its dividend for 4 consecutive years and Alpine Income Property Trust has increased its dividend for 3 consecutive years. Innovative Industrial Properties is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider and Institutional Ownership

70.6% of Innovative Industrial Properties shares are held by institutional investors. Comparatively, 60.5% of Alpine Income Property Trust shares are held by institutional investors. 2.0% of Innovative Industrial Properties shares are held by company insiders. Comparatively, 0.6% of Alpine Income Property Trust shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings and target prices for Innovative Industrial Properties and Alpine Income Property Trust, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Innovative Industrial Properties	1	4	0	0	1.80
Alpine Income Property Trust	0	4	4	2	2.80

Innovative Industrial Properties presently has a consensus price target of $45.00, indicating a potential downside of 25.51%. Alpine Income Property Trust has a consensus price target of $20.21, indicating a potential upside of 0.35%. Given Alpine Income Property Trust’s stronger consensus rating and higher probable upside, analysts clearly believe Alpine Income Property Trust is more favorable than Innovative Industrial Properties.

Valuation and Earnings

This table compares Innovative Industrial Properties and Alpine Income Property Trust”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Innovative Industrial Properties	$265.95 million	6.54	$118.25 million	$3.91	15.45
Alpine Income Property Trust	$60.53 million	5.50	-$2.66 million	($0.09)	-223.81

Innovative Industrial Properties has higher revenue and earnings than Alpine Income Property Trust. Alpine Income Property 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.

Volatility & Risk

Innovative Industrial Properties has a beta of 1.42, indicating that its share price is 42% more volatile than the S&P 500. Comparatively, Alpine Income Property Trust has a beta of 0.56, indicating that its share price is 44% less volatile than the S&P 500.

Summary

Innovative Industrial Properties beats Alpine Income Property Trust on 13 of the 18 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 Alpine Income Property Trust

Alpine Income Property Trust, Inc. (NYSE: PINE) is a publicly traded real estate investment trust that seeks to deliver attractive risk-adjusted returns and dependable cash dividends by investing in, owning and operating a portfolio of single tenant net leased properties that are predominately leased to high-quality publicly traded and credit-rated tenants.