Analyzing Industrial Logistics Properties Trust (NASDAQ:ILPT) and One Liberty Properties (NYSE:OLP)

One Liberty Properties (NYSE:OLP) and Industrial Logistics Properties Trust (NASDAQ:ILPT) are both small-cap real estate companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, earnings, analyst recommendations, dividends, risk, institutional ownership and valuation.

Insider & Institutional Ownership

36.2% of One Liberty Properties shares are held by institutional investors. Comparatively, 49.1% of Industrial Logistics Properties Trust shares are held by institutional investors. 26.2% of One Liberty Properties shares are held by company insiders. Comparatively, 2.3% of Industrial Logistics Properties Trust shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares One Liberty Properties and Industrial Logistics Properties Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
One Liberty Properties	33.51%	11.52%	4.06%
Industrial Logistics Properties Trust	-10.37%	-5.34%	-0.91%

Dividends

One Liberty Properties pays an annual dividend of $1.80 per share and has a dividend yield of 7.4%. Industrial Logistics Properties Trust pays an annual dividend of $0.40 per share and has a dividend yield of 4.8%. One Liberty Properties pays out 113.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Industrial Logistics Properties Trust pays out -55.6% of its earnings in the form of a dividend.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for One Liberty Properties and Industrial Logistics Properties Trust, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
One Liberty Properties	1	0	1	1	2.67
Industrial Logistics Properties Trust	1	1	1	0	2.00

One Liberty Properties currently has a consensus price target of $28.50, suggesting a potential upside of 17.87%. Industrial Logistics Properties Trust has a consensus price target of $11.50, suggesting a potential upside of 38.55%. Given Industrial Logistics Properties Trust’s higher probable upside, analysts clearly believe Industrial Logistics Properties Trust is more favorable than One Liberty Properties.

Earnings & Valuation

This table compares One Liberty Properties and Industrial Logistics Properties Trust”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
One Liberty Properties	$97.23 million	5.45	$25.47 million	$1.59	15.21
Industrial Logistics Properties Trust	$448.85 million	1.23	-$66.19 million	($0.72)	-11.53

One Liberty Properties has higher earnings, but lower revenue than Industrial Logistics Properties Trust. Industrial Logistics Properties Trust is trading at a lower price-to-earnings ratio than One Liberty Properties, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

One Liberty Properties has a beta of 0.87, meaning that its share price is 13% less volatile than the S&P 500. Comparatively, Industrial Logistics Properties Trust has a beta of 2.49, meaning that its share price is 149% more volatile than the S&P 500.

Summary

One Liberty Properties beats Industrial Logistics Properties Trust on 11 of the 16 factors compared between the two stocks.

About One Liberty Properties

One Liberty Properties, Inc. is a real estate investment trust, which engages in acquisition, ownership, and management of the geographically diversified portfolio consisting primarily of industrial, retail, restaurant, health and fitness, and theater properties, many of which are subject to long-term leases. The properties in the firm’s portfolio include net leases, long-term lease, and scheduled rent increases. The company was founded in December 1982 and is headquartered in Great Neck, NY.

About Industrial Logistics Properties Trust

Industrial Logistics Properties Trust (Nasdaq: ILPT) is a real estate investment trust, or REIT, focused on owning and leasing high quality distribution and logistics properties. As of December 31, 2023, ILPT's portfolio consisted of 411 properties containing approximately 60 million rentable square feet located in 39 states. Approximately 77% of ILPT's annualized rental revenues as of December 31, 2023 are derived from investment grade tenants, tenants that are subsidiaries of investment grade rated entities or Hawaii land leases. ILPT is managed by The RMR Group (Nasdaq: RMR), a leading U.S. alternative asset management company with over $41 billion in assets under management as of December 31, 2023 and more than 35 years of institutional experience in buying, selling, financing and operating commercial real estate. ILPT is headquartered in Newton, MA.