Industrial Logistics Properties Trust (NASDAQ:ILPT – Get Free Report) and CubeSmart (NYSE:CUBE – Get Free Report) are both finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, risk, institutional ownership, earnings, profitability, valuation and analyst recommendations.
Dividends
Industrial Logistics Properties Trust pays an annual dividend of $0.20 per share and has a dividend yield of 2.3%. CubeSmart pays an annual dividend of $2.12 per share and has a dividend yield of 5.2%. Industrial Logistics Properties Trust pays out -24.4% of its earnings in the form of a dividend. CubeSmart pays out 149.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. CubeSmart has increased its dividend for 16 consecutive years. CubeSmart is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Valuation & Earnings
This table compares Industrial Logistics Properties Trust and CubeSmart”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Industrial Logistics Properties Trust | $448.85 million | 1.31 | -$66.19 million | ($0.82) | -10.74 |
| CubeSmart | $1.12 billion | 8.24 | $333.78 million | $1.42 | 28.78 |
CubeSmart has higher revenue and earnings than Industrial Logistics Properties Trust. Industrial Logistics Properties Trust is trading at a lower price-to-earnings ratio than CubeSmart, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Industrial Logistics Properties Trust and CubeSmart’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Industrial Logistics Properties Trust | -11.93% | -5.93% | -1.04% |
| CubeSmart | 28.93% | 11.84% | 4.90% |
Risk & Volatility
Industrial Logistics Properties Trust has a beta of 2.5, meaning that its stock price is 150% more volatile than the S&P 500. Comparatively, CubeSmart has a beta of 1.08, meaning that its stock price is 8% more volatile than the S&P 500.
Institutional & Insider Ownership
49.1% of Industrial Logistics Properties Trust shares are owned by institutional investors. Comparatively, 97.6% of CubeSmart shares are owned by institutional investors. 2.3% of Industrial Logistics Properties Trust shares are owned by insiders. Comparatively, 1.8% of CubeSmart shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Analyst Ratings
This is a breakdown of current ratings and price targets for Industrial Logistics Properties Trust and CubeSmart, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Industrial Logistics Properties Trust | 1 | 0 | 1 | 1 | 2.67 |
| CubeSmart | 0 | 10 | 4 | 0 | 2.29 |
Industrial Logistics Properties Trust presently has a consensus price target of $7.40, suggesting a potential downside of 15.96%. CubeSmart has a consensus price target of $42.91, suggesting a potential upside of 4.99%. Given CubeSmart’s higher possible upside, analysts clearly believe CubeSmart is more favorable than Industrial Logistics Properties Trust.
Summary
CubeSmart beats Industrial Logistics Properties Trust on 13 of the 18 factors compared between the two stocks.
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.
About CubeSmart
CubeSmart is a self-administered and self-managed real estate investment trust. The Company's self-storage properties are designed to offer affordable, easily accessible and, in most locations, climate-controlled storage space for residential and commercial customers. According to the 2023 Self-Storage Almanac, CubeSmart is one of the top three owners and operators of self-storage properties in the United States.
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