Analyzing One Liberty Properties (NYSE:OLP) & Innovative Industrial Properties (NYSE:IIPR)

Innovative Industrial Properties (NYSE:IIPR) and One Liberty Properties (NYSE:OLP) are both small-cap real estate companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, profitability, valuation, risk, earnings, institutional ownership and dividends.

Dividends

Innovative Industrial Properties pays an annual dividend of $7.60 per share and has a dividend yield of 13.5%. One Liberty Properties pays an annual dividend of $1.80 per share and has a dividend yield of 7.5%. 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. One Liberty Properties pays out 113.2% 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 has raised 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.

Insider & Institutional Ownership

70.6% of Innovative Industrial Properties shares are owned by institutional investors. Comparatively, 36.2% of One Liberty Properties shares are owned by institutional investors. 2.3% of Innovative Industrial Properties shares are owned by insiders. Comparatively, 26.2% of One Liberty Properties shares are owned by 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.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Innovative Industrial Properties	$263.65 million	5.87	$118.25 million	$4.41	12.73
One Liberty Properties	$97.23 million	5.38	$25.47 million	$1.59	15.03

Innovative Industrial Properties has higher revenue and earnings than One Liberty Properties. Innovative Industrial Properties is trading at a lower price-to-earnings ratio than One Liberty Properties, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Innovative Industrial Properties and One Liberty Properties, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Innovative Industrial Properties	1	3	0	0	1.75
One Liberty Properties	1	0	1	1	2.67

Innovative Industrial Properties presently has a consensus price target of $48.00, indicating a potential downside of 14.47%. One Liberty Properties has a consensus price target of $28.50, indicating a potential upside of 19.30%. Given One Liberty Properties’ stronger consensus rating and higher probable upside, analysts plainly believe One Liberty Properties is more favorable than Innovative Industrial Properties.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Innovative Industrial Properties	52.27%	7.73%	5.69%
One Liberty Properties	33.51%	11.52%	4.06%

Risk & Volatility

Innovative Industrial Properties has a beta of 1.38, meaning that its share price is 38% more volatile than the S&P 500. Comparatively, One Liberty Properties has a beta of 0.86, meaning that its share price is 14% less volatile than the S&P 500.

Summary

Innovative Industrial Properties beats One Liberty Properties on 10 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 One Liberty Properties

One Liberty Properties, Inc. is a real estate investment trust, which engages in acquisition, ownership, and management of the geographically diversified portfolio consisting primarily of industrial, retail, restaurant, health and fitness, and theater properties, many of which are subject to long-term leases. The properties in the firm’s portfolio include net leases, long-term lease, and scheduled rent increases. The company was founded in December 1982 and is headquartered in Great Neck, NY.