Financial Analysis: Bellway (OTC:BLWYY) vs. Innovative Industrial Properties (NYSE:IIPR)

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

Valuation & Earnings

This table compares Innovative Industrial Properties and Bellway”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Innovative Industrial Properties	$308.52 million	4.79	$165.59 million	$5.53	9.43
Bellway	$3.00 billion	1.25	$164.33 million	N/A	N/A

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

Risk and Volatility

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

Institutional & Insider Ownership

70.6% of Innovative Industrial Properties shares are held by institutional investors. 1.5% of Innovative Industrial Properties shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Dividends

Innovative Industrial Properties pays an annual dividend of $7.60 per share and has a dividend yield of 14.6%. Bellway pays an annual dividend of $0.84 per share and has a dividend yield of 2.7%. 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 Innovative Industrial Properties and Bellway’s net margins, return on equity and return on assets.

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

Analyst Ratings

This is a summary of recent ratings for Innovative Industrial Properties and Bellway, 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
Bellway	0	0	0	1	4.00

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

Summary

Innovative Industrial Properties beats Bellway on 11 of the 14 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 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.