Innovative Industrial Properties (NYSE:IIPR) and Colliers International Group (NASDAQ:CIGI) are both mid-cap finance companies, but which is the better business? We will compare the two companies based on the strength of their earnings, institutional ownership, dividends, profitability, analyst recommendations, risk and valuation.
Dividends
Innovative Industrial Properties pays an annual dividend of $5.28 per share and has a dividend yield of 2.8%. Colliers International Group pays an annual dividend of $0.10 per share and has a dividend yield of 0.1%. Innovative Industrial Properties pays out 161.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Colliers International Group pays out 3.9% of its earnings in the form of a dividend. Innovative Industrial Properties has raised its dividend for 3 consecutive years and Colliers International Group 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.
Risk and Volatility
Innovative Industrial Properties has a beta of 1.52, indicating that its stock price is 52% more volatile than the S&P 500. Comparatively, Colliers International Group has a beta of 1.61, indicating that its stock price is 61% more volatile than the S&P 500.
Institutional and Insider Ownership
74.9% of Innovative Industrial Properties shares are held by institutional investors. Comparatively, 69.8% of Colliers International Group shares are held by institutional investors. 2.9% of Innovative Industrial Properties shares are held by company insiders. Comparatively, 15.3% of Colliers International Group shares are held by company 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.
Valuation and Earnings
This table compares Innovative Industrial Properties and Colliers International Group's top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
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Innovative Industrial Properties | $44.67 million | 102.36 | $23.48 million | $3.27 | 58.44 |
Colliers International Group | $3.05 billion | 1.31 | $102.90 million | $2.57 | 39.64 |
Colliers International Group has higher revenue and earnings than Innovative Industrial Properties. Colliers International Group 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.
Analyst Recommendations
This is a breakdown of current recommendations and price targets for Innovative Industrial Properties and Colliers International Group, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
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Innovative Industrial Properties | 0 | 2 | 5 | 0 | 2.71 |
Colliers International Group | 0 | 1 | 6 | 0 | 2.86 |
Innovative Industrial Properties presently has a consensus price target of $192.4286, indicating a potential upside of 0.69%. Colliers International Group has a consensus price target of $104.6667, indicating a potential upside of 2.75%. Given Colliers International Group's stronger consensus rating and higher possible upside, analysts plainly believe Colliers International Group is more favorable than Innovative Industrial Properties.
Profitability
This table compares Innovative Industrial Properties and Colliers International Group's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
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Innovative Industrial Properties | 55.71% | 6.05% | 4.82% |
Colliers International Group | 2.27% | 12.41% | 2.16% |
Summary
Colliers International Group beats Innovative Industrial Properties on 10 of the 17 factors compared between the two stocks.