Happy Monday Local Search!

I encountered a question yesterday about IP addresses that I haven't been able to clear up and was hoping I could get some added insight from the local search experts.

There are 5 websites (at least) hosted on the exact same ip address. Every digit in the string is the same, it isn't just the same c block. They are all in the same niche, covering the same content topics, but in different states. Is this harmful to their individual seo efforts?

Wouldn't it be better that each is on its own ip address vs. multiple on one?