Innovative Industrial Properties (NYSE:IIPR – Get Free Report) and Lineage (NASDAQ:LINE – Get Free Report) are both real estate companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, analyst recommendations, valuation, earnings, institutional ownership, profitability and dividends.
Profitability
This table compares Innovative Industrial Properties and Lineage’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Innovative Industrial Properties | 53.20% | 8.01% | 5.62% |
| Lineage | -3.15% | -1.85% | -0.89% |
Insider & Institutional Ownership
70.6% of Innovative Industrial Properties shares are held by institutional investors. 2.3% of Innovative Industrial Properties shares are held by company insiders. Comparatively, 71.6% of Lineage shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Dividends
Innovative Industrial Properties pays an annual dividend of $7.60 per share and has a dividend yield of 13.9%. Lineage pays an annual dividend of $2.13 per share and has a dividend yield of 5.4%. Innovative Industrial Properties pays out 171.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Lineage pays out -295.8% of its earnings in the form of a dividend. 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.
Earnings & Valuation
This table compares Innovative Industrial Properties and Lineage”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Innovative Industrial Properties | $263.89 million | 5.72 | $118.25 million | $4.43 | 12.35 |
| Lineage | $5.36 billion | 1.66 | -$100.00 million | ($0.72) | -54.35 |
Innovative Industrial Properties has higher earnings, but lower revenue than Lineage. Lineage 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.
Risk & Volatility
Innovative Industrial Properties has a beta of 1.33, meaning that its share price is 33% more volatile than the S&P 500. Comparatively, Lineage has a beta of 0.79, meaning that its share price is 21% less volatile than the S&P 500.
Analyst Ratings
This is a breakdown of recent ratings and target prices for Innovative Industrial Properties and Lineage, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Innovative Industrial Properties | 1 | 3 | 2 | 0 | 2.17 |
| Lineage | 3 | 9 | 5 | 0 | 2.12 |
Innovative Industrial Properties currently has a consensus target price of $51.81, suggesting a potential downside of 5.33%. Lineage has a consensus target price of $41.93, suggesting a potential upside of 7.16%. Given Lineage’s higher probable upside, analysts clearly believe Lineage is more favorable than Innovative Industrial Properties.
Summary
Innovative Industrial Properties beats Lineage on 12 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 Lineage
Lineage, Inc. is the world’s largest global temperature-controlled warehouse REIT with a network of over 480 strategically located facilities totaling over 84.1 million square feet and 3.0 billion cubic feet of capacity across countries in North America, Europe, and Asia-Pacific. Coupling end-to-end supply chain solutions and technology, Lineage partners with some of the world’s largest food and beverage producers, retailers, and distributors to help increase distribution efficiency, advance sustainability, minimize supply chain waste, and, most importantly, feed the world.
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