Comparing Innovative Industrial Properties (NYSE:IIPR) and Medical Properties Trust (NYSE:MPW)

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

Insider & Institutional Ownership

70.6% of Innovative Industrial Properties shares are owned by institutional investors. Comparatively, 71.8% of Medical Properties Trust shares are owned by institutional investors. 2.0% of Innovative Industrial Properties shares are owned by insiders. Comparatively, 1.3% of Medical Properties Trust shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Dividends

Innovative Industrial Properties pays an annual dividend of $7.60 per share and has a dividend yield of 13.4%. Medical Properties Trust pays an annual dividend of $0.32 per share and has a dividend yield of 7.3%. Innovative Industrial Properties pays out 146.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Medical Properties Trust pays out -11.6% of its earnings in the form of a dividend. 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.

Volatility & Risk

Innovative Industrial Properties has a beta of 1.69, meaning that its share price is 69% more volatile than the S&P 500. Comparatively, Medical Properties Trust has a beta of 1.29, meaning that its share price is 29% more volatile than the S&P 500.

Earnings and Valuation

This table compares Innovative Industrial Properties and Medical Properties Trust”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Innovative Industrial Properties	$308.52 million	5.16	$161.66 million	$5.20	10.92
Medical Properties Trust	$995.55 million	2.64	-$2.41 billion	($2.77)	-1.58

Innovative Industrial Properties has higher earnings, but lower revenue than Medical Properties Trust. Medical Properties 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Innovative Industrial Properties	50.30%	8.01%	6.45%
Medical Properties Trust	-174.35%	-31.14%	-10.91%

Analyst Ratings

This is a breakdown of current ratings and target prices for Innovative Industrial Properties and Medical Properties Trust, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Innovative Industrial Properties	2	5	1	1	2.11
Medical Properties Trust	1	4	2	0	2.14

Innovative Industrial Properties currently has a consensus target price of $78.67, suggesting a potential upside of 38.53%. Medical Properties Trust has a consensus target price of $5.67, suggesting a potential upside of 29.38%. Given Innovative Industrial Properties’ higher probable upside, analysts plainly believe Innovative Industrial Properties is more favorable than Medical Properties Trust.

Summary

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

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.

About Medical Properties Trust

Medical Properties Trust, Inc. is a self-advised real estate investment trust formed in 2003 to acquire and develop net-leased hospital facilities. From its inception in Birmingham, Alabama, the Company has grown to become one of the world's largest owners of hospital real estate with 441 facilities and approximately 44,000 licensed beds as of September 30, 2023. Since the end of the third quarter, the Company has sold four facilities and now owns approximately 43,000 licensed beds in nine countries across three continents. MPT's financing model facilitates acquisitions and recapitalizations and allows operators of hospitals to unlock the value of their real estate assets to fund facility improvements, technology upgrades and other investments in operations.