Cap rate vs. ROI

[Kevin Dawravoo]

I am just getting into REI so this may be a very basic question for most of you but I've been struggling to figure out what is more important cap rate or ROI. And is the ROI denominator (investment basis) only the amount of money you have put into the property and not the property value? I know the equations: ROI = Cash flow/ Investment basis CAP Rate = NOI/Property Price