Innovative Industrial Properties (NYSE:IIPR) and Freedom Leaf (OTCMKTS:FRLF) are both finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, profitability, dividends, risk, valuation, analyst recommendations and institutional ownership.
Analyst Ratings
This is a summary of recent ratings and price targets for Innovative Industrial Properties and Freedom Leaf, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Innovative Industrial Properties | 0 | 2 | 5 | 0 | 2.71 |
Freedom Leaf | 0 | 0 | 0 | 0 | N/A |
Innovative Industrial Properties presently has a consensus target price of $192.4286, suggesting a potential upside of 9.34%. Given Innovative Industrial Properties' higher possible upside, equities analysts clearly believe Innovative Industrial Properties is more favorable than Freedom Leaf.
Profitability
This table compares Innovative Industrial Properties and Freedom Leaf's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Innovative Industrial Properties | 55.71% | 6.05% | 4.82% |
Freedom Leaf | N/A | N/A | N/A |
Institutional and Insider Ownership
74.9% of Innovative Industrial Properties shares are owned by institutional investors. 2.9% of Innovative Industrial Properties shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Earnings and Valuation
This table compares Innovative Industrial Properties and Freedom Leaf'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 | $44.67 million | 94.26 | $23.48 million | $3.27 | 53.82 |
Freedom Leaf | N/A | N/A | N/A | N/A | N/A |
Innovative Industrial Properties has higher revenue and earnings than Freedom Leaf.
Summary
Innovative Industrial Properties beats Freedom Leaf on 8 of the 8 factors compared between the two stocks.