Critical Analysis: Mobile Infrastructure (NASDAQ:BEEP) & Innovative Industrial Properties (NYSE:IIPR)

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

Analyst Recommendations

This is a summary of recent ratings and target prices for Mobile Infrastructure and Innovative Industrial Properties, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mobile Infrastructure	0	0	0	0	0.00
Innovative Industrial Properties	0	2	2	1	2.80

Innovative Industrial Properties has a consensus target price of $127.67, suggesting a potential upside of 22.30%. Given Innovative Industrial Properties’ stronger consensus rating and higher probable upside, analysts plainly believe Innovative Industrial Properties is more favorable than Mobile Infrastructure.

Volatility and Risk

Mobile Infrastructure has a beta of 0.67, suggesting that its share price is 33% less volatile than the S&P 500. Comparatively, Innovative Industrial Properties has a beta of 1.37, suggesting that its share price is 37% more volatile than the S&P 500.

Earnings and Valuation

This table compares Mobile Infrastructure and Innovative Industrial Properties”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mobile Infrastructure	$35.74 million	2.75	-$25.12 million	($0.90)	-3.40
Innovative Industrial Properties	$309.51 million	9.56	$165.59 million	$5.62	18.57

Innovative Industrial Properties has higher revenue and earnings than Mobile Infrastructure. Mobile Infrastructure 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 Mobile Infrastructure and Innovative Industrial Properties’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Mobile Infrastructure	-24.59%	-4.36%	-2.09%
Innovative Industrial Properties	52.51%	8.44%	6.82%

Institutional and Insider Ownership

84.3% of Mobile Infrastructure shares are owned by institutional investors. Comparatively, 70.6% of Innovative Industrial Properties shares are owned by institutional investors. 46.2% of Mobile Infrastructure shares are owned by company insiders. Comparatively, 1.5% of Innovative Industrial Properties shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

Innovative Industrial Properties beats Mobile Infrastructure on 13 of the 15 factors compared between the two stocks.

About Mobile Infrastructure

Mobile Infrastructure Corporation is a Maryland corporation. The Company owns a diversified portfolio of parking assets primarily located in the Midwest and Southwest. As of December 31, 2023, the Company owned 43 parking facilities in 21 separate markets throughout the United States, with a total of 15,700 parking spaces and approximately 5.4 million square feet. The Company also owns approximately 0.2 million square feet of retail/commercial space adjacent to its parking facilities.

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.