Kennedy-Wilson (KW) vs. Innovative Industrial Properties (IIPR) Head-To-Head Comparison

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

Profitability

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

Net Margins Return on Equity Return on Assets
Kennedy-Wilson 11.76% 2.66% 0.65%
Innovative Industrial Properties 14.26% 1.42% 1.21%

Dividends

Kennedy-Wilson pays an annual dividend of $0.76 per share and has a dividend yield of 3.7%. Innovative Industrial Properties pays an annual dividend of $1.00 per share and has a dividend yield of 2.7%. Kennedy-Wilson pays out 168.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Innovative Industrial Properties pays out 149.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Kennedy-Wilson has raised its dividend for 7 consecutive years. Kennedy-Wilson is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Ratings

This is a summary of current ratings and target prices for Kennedy-Wilson and Innovative Industrial Properties, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Kennedy-Wilson 0 1 2 0 2.67
Innovative Industrial Properties 0 0 1 0 3.00

Kennedy-Wilson presently has a consensus price target of $26.00, indicating a potential upside of 25.18%. Innovative Industrial Properties has a consensus price target of $34.00, indicating a potential downside of 6.82%. Given Kennedy-Wilson’s higher probable upside, equities research analysts plainly believe Kennedy-Wilson is more favorable than Innovative Industrial Properties.

Insider and Institutional Ownership

88.6% of Kennedy-Wilson shares are owned by institutional investors. Comparatively, 48.9% of Innovative Industrial Properties shares are owned by institutional investors. 14.6% of Kennedy-Wilson shares are owned by company insiders. Comparatively, 6.2% of Innovative Industrial Properties shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Kennedy-Wilson and Innovative Industrial Properties’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Kennedy-Wilson $810.60 million 3.72 $100.50 million $0.45 46.16
Innovative Industrial Properties $6.42 million 36.15 -$70,000.00 $0.67 54.46

Kennedy-Wilson has higher revenue and earnings than Innovative Industrial Properties. Kennedy-Wilson 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.

Risk & Volatility

Kennedy-Wilson has a beta of 1.28, indicating that its share price is 28% more volatile than the S&P 500. Comparatively, Innovative Industrial Properties has a beta of -0.88, indicating that its share price is 188% less volatile than the S&P 500.

Summary

Kennedy-Wilson beats Innovative Industrial Properties on 10 of the 17 factors compared between the two stocks.

About Kennedy-Wilson

Kennedy-Wilson Holdings, Inc. operates as a real estate investment company. The company owns, operates, and invests in real estate both on its own and through its investment management platform. It focuses on multifamily and commercial properties located in the Western United States, the United Kingdom, Ireland, Spain, Italy, and Japan. The company owns interest in approximately 53.1 million square feet of property, including 27,161 multifamily rental units; and 18.8 million square feet of commercial property. It also provides real estate services primarily to financial services clients. In addition, the company is involved in the development, redevelopment, and entitlement of real estate properties; and management of real estate properties for third parties. Kennedy-Wilson Holdings, Inc. was founded in 1977 and is headquartered in Beverly Hills, California.

About Innovative Industrial Properties

Innovative Industrial Properties, Inc. is a self-advised Maryland corporation focused on the acquisition, ownership and management of specialized industrial properties leased to experienced, state-licensed operators for their regulated medical-use cannabis facilities. Innovative Industrial Properties, Inc. intends to elect to be taxed as a real estate investment trust. Additional information is available at www.innovativeindustrialproperties.com.

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