Alpine Income Property Trust (NYSE:PINE) versus Innovative Industrial Properties (NYSE:IIPR) Critical Comparison

Alpine Income Property Trust (NYSE:PINE) and Innovative Industrial Properties (NYSE:IIPR) are both small-cap finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, valuation, profitability, institutional ownership, analyst recommendations, risk and dividends.

Profitability

This table compares Alpine Income Property Trust and Innovative Industrial Properties’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Alpine Income Property Trust	1.09%	0.25%	0.10%
Innovative Industrial Properties	45.58%	6.62%	5.10%

Dividends

Alpine Income Property Trust pays an annual dividend of $1.20 per share and has a dividend yield of 6.0%. Innovative Industrial Properties pays an annual dividend of $7.60 per share and has a dividend yield of 12.6%. Alpine Income Property Trust pays out -1,333.3% of its earnings in the form of a dividend. Innovative Industrial Properties pays out 194.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Alpine Income Property Trust has raised its dividend for 3 consecutive years and 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.

Insider and Institutional Ownership

60.5% of Alpine Income Property Trust shares are owned by institutional investors. Comparatively, 70.6% of Innovative Industrial Properties shares are owned by institutional investors. 0.6% of Alpine Income Property Trust 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 endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Alpine Income Property Trust and Innovative Industrial Properties, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alpine Income Property Trust	0	4	4	2	2.80
Innovative Industrial Properties	1	4	0	0	1.80

Alpine Income Property Trust presently has a consensus target price of $20.21, indicating a potential upside of 0.35%. Innovative Industrial Properties has a consensus target price of $45.00, indicating a potential downside of 25.51%. Given Alpine Income Property Trust’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Alpine Income Property Trust is more favorable than Innovative Industrial Properties.

Valuation and Earnings

This table compares Alpine Income Property Trust and Innovative Industrial Properties”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Alpine Income Property Trust	$60.53 million	5.50	-$2.66 million	($0.09)	-223.81
Innovative Industrial Properties	$265.95 million	6.54	$118.25 million	$3.91	15.45

Innovative Industrial Properties has higher revenue and earnings than Alpine Income Property Trust. Alpine Income Property Trust 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.

Volatility and Risk

Alpine Income Property Trust has a beta of 0.56, indicating that its stock price is 44% less volatile than the S&P 500. Comparatively, Innovative Industrial Properties has a beta of 1.42, indicating that its stock price is 42% more volatile than the S&P 500.

Summary

Innovative Industrial Properties beats Alpine Income Property Trust on 13 of the 18 factors compared between the two stocks.

About Alpine Income Property Trust

Alpine Income Property Trust, Inc. (NYSE: PINE) is a publicly traded real estate investment trust that seeks to deliver attractive risk-adjusted returns and dependable cash dividends by investing in, owning and operating a portfolio of single tenant net leased properties that are predominately leased to high-quality publicly traded and credit-rated tenants.

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.