DigiPath (OTCMKTS:DIGP) and Innovative Industrial Properties (NYSE:IIPR) are both medical companies, but which is the superior investment? We will contrast the two businesses based on the strength of their profitability, valuation, dividends, earnings, risk, analyst recommendations and institutional ownership.
Institutional and Insider Ownership
74.9% of Innovative Industrial Properties shares are held by institutional investors. 10.8% of DigiPath shares are held by insiders. Comparatively, 2.9% of Innovative Industrial Properties shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Earnings & Valuation
This table compares DigiPath and Innovative Industrial Properties' top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
DigiPath | $2.55 million | 1.13 | $-1,800,000.00 | N/A | N/A |
Innovative Industrial Properties | $44.67 million | 99.06 | $23.48 million | $3.27 | 56.56 |
Innovative Industrial Properties has higher revenue and earnings than DigiPath.
Volatility & Risk
DigiPath has a beta of 1.71, meaning that its share price is 71% more volatile than the S&P 500. Comparatively, Innovative Industrial Properties has a beta of 1.52, meaning that its share price is 52% more volatile than the S&P 500.
Analyst Recommendations
This is a summary of recent ratings and recommmendations for DigiPath and Innovative Industrial Properties, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
DigiPath | 0 | 0 | 0 | 0 | N/A |
Innovative Industrial Properties | 0 | 2 | 5 | 0 | 2.71 |
Innovative Industrial Properties has a consensus target price of $192.4286, suggesting a potential upside of 4.05%. Given Innovative Industrial Properties' higher probable upside, analysts clearly believe Innovative Industrial Properties is more favorable than DigiPath.
Profitability
This table compares DigiPath and Innovative Industrial Properties' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
DigiPath | -67.99% | -1,137.19% | -88.49% |
Innovative Industrial Properties | 55.71% | 6.05% | 4.82% |
Summary
Innovative Industrial Properties beats DigiPath on 10 of the 12 factors compared between the two stocks.