Welltower (NYSE:WELL) vs. Innovative Industrial Properties (NYSE:IIPR) Financial Survey

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

Insider and Institutional Ownership

94.8% of Welltower shares are owned by institutional investors. Comparatively, 70.6% of Innovative Industrial Properties shares are owned by institutional investors. 0.2% of Welltower shares are owned by company insiders. Comparatively, 2.0% of Innovative Industrial Properties shares are owned by company 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Welltower	12.18%	3.38%	2.16%
Innovative Industrial Properties	47.71%	7.26%	5.83%

Dividends

Welltower pays an annual dividend of $2.96 per share and has a dividend yield of 1.8%. Innovative Industrial Properties pays an annual dividend of $7.60 per share and has a dividend yield of 13.8%. Welltower pays out 167.2% 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 pays out 164.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Welltower has increased its dividend for 2 consecutive years and Innovative Industrial Properties has increased 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.

Analyst Recommendations

This is a breakdown of current recommendations for Welltower and Innovative Industrial Properties, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Welltower	1	1	7	1	2.80
Innovative Industrial Properties	2	5	1	1	2.11

Welltower currently has a consensus price target of $173.10, suggesting a potential upside of 4.33%. Innovative Industrial Properties has a consensus price target of $78.67, suggesting a potential upside of 43.21%. Given Innovative Industrial Properties’ higher probable upside, analysts clearly believe Innovative Industrial Properties is more favorable than Welltower.

Valuation & Earnings

This table compares Welltower and Innovative Industrial Properties”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Welltower	$7.99 billion	13.89	$951.68 million	$1.77	93.74
Innovative Industrial Properties	$308.52 million	4.99	$161.66 million	$4.62	11.89

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

Volatility & Risk

Welltower has a beta of 0.93, indicating that its stock price is 7% less volatile than the S&P 500. Comparatively, Innovative Industrial Properties has a beta of 1.65, indicating that its stock price is 65% more volatile than the S&P 500.

Summary

Innovative Industrial Properties beats Welltower on 10 of the 17 factors compared between the two stocks.

About Welltower

Welltower Inc. (NYSE:WELL), a real estate investment trust (“REIT”) and S&P 500 company headquartered in Toledo, Ohio, is driving the transformation of health care infrastructure. Welltower invests with leading seniors housing operators, post-acute providers and health systems to fund the real estate infrastructure needed to scale innovative care delivery models and improve people’s wellness and overall health care experience. Welltower owns interests in properties concentrated in major, high-growth markets in the United States, Canada and the United Kingdom, consisting of seniors housing and post-acute communities and outpatient medical properties.

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.