IIPR vs O

For growth investors, Realty Income Corporation (O) is the stronger pick with 9.

1% revenue growth year-over-year, versus -13. 8% for Innovative Industrial Properties, Inc. (IIPR). Innovative Industrial Properties, Inc. (IIPR) offers the better valuation at 15. 3x trailing P/E (14. 0x forward), making it the more compelling value choice. Analysts rate Innovative Industrial Properties, Inc. (IIPR) a "Hold" — based on 11 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, Innovative Industrial Properties, Inc.

(IIPR) is the cheapest at 15. 3x versus Realty Income Corporation at 54. 3x. On forward P/E, Innovative Industrial Properties, Inc. is actually cheaper at 14. 0x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Innovative Industrial Properties, Inc. wins at 3. 75x versus Realty Income Corporation's 73. 34x.

Over the past 5 years, Realty Income Corporation (O) delivered a total return of +21.

3%, compared to -44. 5% for Innovative Industrial Properties, Inc. (IIPR). Over 10 years, the gap is even starker: IIPR returned +455. 8% versus O's +51. 8%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Realty Income Corporation (O) is the lower-risk stock at 0.

09β versus Innovative Industrial Properties, Inc. 's 0. 92β — meaning IIPR is approximately 914% more volatile than O relative to the S&P 500.

By revenue growth (latest reported year), Realty Income Corporation (O) is pulling ahead at 9.

1% versus -13. 8% for Innovative Industrial Properties, Inc. (IIPR). On earnings-per-share growth, the picture is similar: Realty Income Corporation grew EPS 19. 4% year-over-year, compared to -28. 8% for Innovative Industrial Properties, Inc.. Over a 3-year CAGR, O leads at 19. 8% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Innovative Industrial Properties, Inc.

(IIPR) is the more profitable company, earning 43. 0% net margin versus 18. 4% for Realty Income Corporation — meaning it keeps 43. 0% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: IIPR leads at 46. 7% versus 28. 3% for O. At the gross margin level — before operating expenses — O leads at 89. 8%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, Innovative Industrial Properties, Inc. (IIPR) is the more undervalued stock at a PEG of 3. 75x versus Realty Income Corporation's 73. 34x. Both stocks trade at elevated growth-adjusted valuations, so expected growth needs to materialise. On forward earnings alone, Innovative Industrial Properties, Inc. (IIPR) trades at 14. 0x forward P/E versus 38. 2x for Realty Income Corporation — 24. 2x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for O: 2. 6% to $65. 25.

In this comparison, IIPR (12.

6% yield) pays a dividend. O does not pay a meaningful dividend and should not be held primarily for income.

For long-horizon retirement investors, Innovative Industrial Properties, Inc.

(IIPR) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 92), 12. 6% yield, +455. 8% 10Y return). Both have compounded well over 10 years (IIPR: +455. 8%, O: +51. 8%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Real Estate sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

In terms of investment character: IIPR is a small-cap deep-value stock; O is a mid-cap quality compounder stock. IIPR pays a dividend while O does not, making them suitable for different income and tax situations. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.