Industrial Logistics Properties Trust (NASDAQ:ILPT) & CareTrust REIT (NYSE:CTRE) Critical Survey

CareTrust REIT (NYSE:CTRE) and Industrial Logistics Properties Trust (NASDAQ:ILPT) are both finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, analyst recommendations, earnings, dividends, risk, institutional ownership and valuation.

Earnings and Valuation

This table compares CareTrust REIT and Industrial Logistics Properties Trust”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CareTrust REIT	$476.39 million	19.17	$320.54 million	$1.55	26.39
Industrial Logistics Properties Trust	$448.85 million	0.89	-$66.19 million	($1.01)	-5.90

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

Dividends

CareTrust REIT pays an annual dividend of $1.34 per share and has a dividend yield of 3.3%. Industrial Logistics Properties Trust pays an annual dividend of $0.20 per share and has a dividend yield of 3.4%. CareTrust REIT pays out 86.5% 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 -19.8% of its earnings in the form of a dividend. Industrial Logistics Properties Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Recommendations

This is a breakdown of recent recommendations for CareTrust REIT and Industrial Logistics Properties Trust, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CareTrust REIT	0	1	1	3	3.40
Industrial Logistics Properties Trust	1	1	0	1	2.33

CareTrust REIT presently has a consensus price target of $43.00, indicating a potential upside of 5.11%. Industrial Logistics Properties Trust has a consensus price target of $5.00, indicating a potential downside of 16.11%. Given CareTrust REIT’s stronger consensus rating and higher probable upside, research analysts clearly believe CareTrust REIT is more favorable than Industrial Logistics Properties Trust.

Volatility and Risk

CareTrust REIT has a beta of 0.75, indicating that its stock price is 25% less volatile than the S&P 500. Comparatively, Industrial Logistics Properties Trust has a beta of 2.48, indicating that its stock price is 148% more volatile than the S&P 500.

Institutional & Insider Ownership

87.8% of CareTrust REIT shares are owned by institutional investors. Comparatively, 49.1% of Industrial Logistics Properties Trust shares are owned by institutional investors. 0.5% of CareTrust REIT shares are owned by insiders. Comparatively, 1.8% of Industrial Logistics Properties Trust shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
CareTrust REIT	67.28%	8.98%	6.83%
Industrial Logistics Properties Trust	-14.75%	-7.08%	-1.26%

Summary

CareTrust REIT beats Industrial Logistics Properties Trust on 13 of the 17 factors compared between the two stocks.

About CareTrust REIT

CareTrust REIT, Inc. is a self-administered, publicly-traded real estate investment trust engaged in the ownership, acquisition, development and leasing of skilled nursing, seniors housing and other healthcare-related properties. With a nationwide portfolio of long-term net-leased properties, and a growing portfolio of quality operators leasing them, CareTrust REIT is pursuing both external and organic growth opportunities across the United States.

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.