Innovative Industrial Properties (NYSE:IIPR – Get Free Report) and Americold Realty Trust (NYSE:COLD – Get Free Report) are both real estate companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, earnings, institutional ownership, analyst recommendations, risk, valuation and profitability.
Risk & Volatility
Innovative Industrial Properties has a beta of 1.37, indicating that its share price is 37% more volatile than the S&P 500. Comparatively, Americold Realty Trust has a beta of 0.92, indicating that its share price is 8% less volatile than the S&P 500.
Analyst Ratings
This is a summary of recent ratings and recommmendations for Innovative Industrial Properties and Americold Realty Trust, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Innovative Industrial Properties | 1 | 3 | 1 | 0 | 2.00 |
| Americold Realty Trust | 2 | 9 | 5 | 0 | 2.19 |
Profitability
This table compares Innovative Industrial Properties and Americold Realty Trust’s 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% |
| Americold Realty Trust | -17.44% | -16.14% | -5.68% |
Dividends
Innovative Industrial Properties pays an annual dividend of $7.60 per share and has a dividend yield of 14.7%. Americold Realty Trust pays an annual dividend of $0.92 per share and has a dividend yield of 6.6%. 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. Americold Realty Trust pays out -57.9% of its earnings in the form of a dividend. Innovative Industrial Properties has raised its dividend for 4 consecutive years and Americold Realty Trust has raised its dividend for 1 consecutive years. Innovative Industrial Properties is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Earnings and Valuation
This table compares Innovative Industrial Properties and Americold Realty Trust”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Innovative Industrial Properties | $265.95 million | 5.36 | $118.25 million | $4.41 | 11.73 |
| Americold Realty Trust | $2.60 billion | 1.53 | -$114.55 million | ($1.59) | -8.79 |
Innovative Industrial Properties has higher earnings, but lower revenue than Americold Realty Trust. Americold Realty 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.
Institutional and Insider Ownership
70.6% of Innovative Industrial Properties shares are held by institutional investors. Comparatively, 98.1% of Americold Realty Trust shares are held by institutional investors. 2.3% of Innovative Industrial Properties shares are held by company insiders. Comparatively, 0.4% of Americold Realty Trust shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Summary
Innovative Industrial Properties beats Americold Realty Trust 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 Americold Realty Trust
Americold Realty Trust, Inc. is a real estate investment trust, which focuses on the ownership, operation, development, and acquisition of temperature-controlled warehouses. It operates through the following segments: Warehouse, Third-Party Managed, Transportation, and Other. The Warehouse segment collects rent and storage fees from customers to store frozen and perishable food and other products within the firm’s real estate portfolio. The Third-Party Managed segment manages warehouses on behalf of third parties and provides warehouse management services to food retailers and manufacturers in customer-owned facilities. The Transportation segment is involved in brokering and managing transportation of frozen and perishable food and other products. The Other segment includes ownership in a limestone quarry in Carthage, Missouri. The company was founded in 1931 and is headquartered in Atlanta, GA.
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