Reviewing Jernigan Capital (NASDAQ:JCAP) & Summit Industrial Income REIT (OTCMKTS:SMMCF)

Jernigan Capital (NASDAQ:JCAP) and Summit Industrial Income REIT (OTCMKTS:SMMCF) are both finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, earnings, risk, institutional ownership, profitability, analyst recommendations and valuation.

Dividends

Jernigan Capital pays an annual dividend of $0.96 per share and has a dividend yield of 4.9%. Summit Industrial Income REIT pays an annual dividend of $0.21 per share and has a dividend yield of 1.2%. Jernigan Capital pays out 37.1% of its earnings in the form of a dividend. Summit Industrial Income REIT pays out 35.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Earnings and Valuation

This table compares Jernigan Capital and Summit Industrial Income REIT”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Jernigan Capital	$613.29 million	1.76	$187.96 million	$2.59	7.52
Summit Industrial Income REIT	N/A	N/A	N/A	$0.59	29.50

Jernigan Capital has higher revenue and earnings than Summit Industrial Income REIT. Jernigan Capital is trading at a lower price-to-earnings ratio than Summit Industrial Income REIT, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

0.1% of Summit Industrial Income REIT shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings and price targets for Jernigan Capital and Summit Industrial Income REIT, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Jernigan Capital	1	1	5	1	2.75
Summit Industrial Income REIT	0	0	0	0	0.00

Jernigan Capital presently has a consensus target price of $25.20, suggesting a potential upside of 29.43%. Given Jernigan Capital’s stronger consensus rating and higher possible upside, analysts plainly believe Jernigan Capital is more favorable than Summit Industrial Income REIT.

Profitability

This table compares Jernigan Capital and Summit Industrial Income REIT’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Jernigan Capital	25.42%	38.63%	8.82%
Summit Industrial Income REIT	N/A	N/A	N/A

Summary

Jernigan Capital beats Summit Industrial Income REIT on 10 of the 13 factors compared between the two stocks.

About Jernigan Capital

Jernigan Capital is a New York Stock Exchange-listed real estate investment trust (NYSE: JCAP) that provides debt and equity capital to private developers, owners and operators of self-storage facilities with a view to eventual outright ownership of facilities the Company finances. The Company's mission is to maximize shareholder value by accumulating a multi-billion dollar investment portfolio consisting of the newest, most attractive and best located self-storage facilities in the United States through a talented and experienced team demonstrating the highest levels of integrity, dedication, excellence and community.

About Summit Industrial Income REIT

Summit Industrial Income REIT is an open-ended mutual fund trust, which engages in growing and managing a portfolio of light industrial properties. Its properties are located in Ontario, Quebec, Alberta, British Columbia, and New Brunswick. The company was founded on November 24, 1998 and is headquartered in Markham, Canada.