Contrasting Innovative Industrial Properties (NYSE:IIPR) and Bellway (OTC:BLWYY)

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

Dividends

Bellway pays an annual dividend of $0.84 per share and has a dividend yield of 2.7%. Innovative Industrial Properties pays an annual dividend of $7.60 per share and has a dividend yield of 14.6%. Innovative Industrial Properties pays out 137.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Bellway	N/A	N/A	N/A
Innovative Industrial Properties	52.40%	8.39%	6.77%

Analyst Ratings

This is a summary of recent ratings and recommmendations for Bellway and Innovative Industrial Properties, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bellway	0	0	0	1	4.00
Innovative Industrial Properties	2	5	1	1	2.11

Innovative Industrial Properties has a consensus price target of $85.00, indicating a potential upside of 62.99%. Given Innovative Industrial Properties’ higher possible upside, analysts clearly believe Innovative Industrial Properties is more favorable than Bellway.

Volatility & Risk

Bellway has a beta of 0.12, suggesting that its stock price is 88% less volatile than the S&P 500. Comparatively, Innovative Industrial Properties has a beta of 1.59, suggesting that its stock price is 59% more volatile than the S&P 500.

Institutional & Insider Ownership

70.6% of Innovative Industrial Properties shares are owned by institutional investors. 1.5% of Innovative Industrial Properties shares are owned by company 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.

Valuation & Earnings

This table compares Bellway 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
Bellway	$3.00 billion	1.25	$164.33 million	N/A	N/A
Innovative Industrial Properties	$308.52 million	4.79	$165.59 million	$5.53	9.43

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

Summary

Innovative Industrial Properties beats Bellway on 11 of the 14 factors compared between the two stocks.

About Bellway

Bellway p.l.c., together with its subsidiaries, engages in the home building business in the United Kingdom. The company builds and sells homes ranging from one-bedroom apartments to six-bedroom family homes, as well as provides homes to housing associations for social housing. It offers homes under Bellway, Ashberry, and Bellway London brands. The company was founded in 1946 and is headquartered in Newcastle upon Tyne, the United Kingdom.

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.