Head-To-Head Comparison: Innovative Industrial Properties (NYSE:IIPR) versus Prologis (NYSE:PLD)

Innovative Industrial Properties (NYSE:IIPR) and Prologis (NYSE:PLD) are both real estate companies, but which is the better business? We will compare the two companies based on the strength of their risk, institutional ownership, valuation, dividends, analyst recommendations, profitability and earnings.

Dividends

Innovative Industrial Properties pays an annual dividend of $7.60 per share and has a dividend yield of 13.2%. Prologis pays an annual dividend of $4.28 per share and has a dividend yield of 3.0%. 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 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 has increased its dividend for 4 consecutive years and Prologis has increased its dividend for 12 consecutive years.

Insider and Institutional Ownership

70.6% of Innovative Industrial Properties shares are owned by institutional investors. Comparatively, 93.5% of Prologis shares are owned by institutional investors. 2.3% of Innovative Industrial Properties shares are owned by insiders. Comparatively, 0.5% of Prologis shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Innovative Industrial Properties and Prologis”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	5.98	$118.25 million	$4.41	13.08
Prologis	$8.79 billion	14.94	$3.33 billion	$4.49	31.35

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.

Volatility & Risk

Innovative Industrial Properties has a beta of 1.38, meaning that its share price is 38% more volatile than the S&P 500. Comparatively, Prologis has a beta of 1.31, meaning that its share price is 31% more volatile than the S&P 500.

Profitability

This table compares Innovative Industrial Properties and Prologis’ 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%
Prologis	45.79%	7.29%	4.25%

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Innovative Industrial Properties and Prologis, 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
Prologis	0	7	16	0	2.70

Innovative Industrial Properties currently has a consensus price target of $48.00, suggesting a potential downside of 16.78%. Prologis has a consensus price target of $154.57, suggesting a potential upside of 9.82%. Given Prologis’ stronger consensus rating and higher probable upside, analysts clearly believe Prologis is more favorable than Innovative Industrial Properties.

Summary

Prologis beats Innovative Industrial Properties on 11 of the 17 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 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.