Industrial Logistics Properties Trust (NASDAQ:ILPT – Get Free Report) and TPG RE Finance Trust (NYSE:TRTX – Get Free Report) are both small-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, dividends, risk, institutional ownership, valuation, profitability and analyst recommendations.
Risk and Volatility
Industrial Logistics Properties Trust has a beta of 1.84, indicating that its share price is 84% more volatile than the S&P 500. Comparatively, TPG RE Finance Trust has a beta of 2.16, indicating that its share price is 116% more volatile than the S&P 500.
Profitability
This table compares Industrial Logistics Properties Trust and TPG RE Finance Trust’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Industrial Logistics Properties Trust | -23.33% | -9.31% | -1.87% |
| TPG RE Finance Trust | 19.65% | -7.50% | -2.19% |
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Industrial Logistics Properties Trust | 0 | 1 | 1 | 0 | 2.50 |
| TPG RE Finance Trust | 1 | 0 | 5 | 0 | 2.67 |
Industrial Logistics Properties Trust presently has a consensus target price of $10.00, suggesting a potential upside of 151.26%. TPG RE Finance Trust has a consensus target price of $8.92, suggesting a potential upside of 3.92%. Given Industrial Logistics Properties Trust’s higher probable upside, research analysts plainly believe Industrial Logistics Properties Trust is more favorable than TPG RE Finance Trust.
Earnings and Valuation
This table compares Industrial Logistics Properties Trust and TPG RE Finance Trust”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 | $437.34 million | 0.60 | -$107.99 million | ($1.57) | -2.54 |
| TPG RE Finance Trust | $390.25 million | 1.78 | -$116.63 million | $0.69 | 12.43 |
Industrial Logistics Properties Trust has higher revenue and earnings than TPG RE Finance Trust. Industrial Logistics Properties Trust is trading at a lower price-to-earnings ratio than TPG RE Finance Trust, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
49.1% of Industrial Logistics Properties Trust shares are owned by institutional investors. Comparatively, 57.1% of TPG RE Finance Trust shares are owned by institutional investors. 1.8% of Industrial Logistics Properties Trust shares are owned by insiders. Comparatively, 2.5% of TPG RE Finance Trust shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Dividends
Industrial Logistics Properties Trust pays an annual dividend of $0.04 per share and has a dividend yield of 1.0%. TPG RE Finance Trust pays an annual dividend of $0.96 per share and has a dividend yield of 11.2%. Industrial Logistics Properties Trust pays out -2.5% of its earnings in the form of a dividend. TPG RE Finance Trust pays out 139.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Summary
TPG RE Finance Trust beats Industrial Logistics Properties Trust on 11 of the 16 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 TPG RE Finance Trust
TPG RE Finance Trust, Inc., a commercial real estate finance company, originates, acquires, and manages commercial mortgage loans and other commercial real estate-related debt instruments in the United States. It invests in commercial mortgage loans; subordinate mortgage interests, mezzanine loans, secured real estate securities, note financing, preferred equity, and miscellaneous debt instruments; and commercial real estate collateralized loan obligations and commercial mortgage-backed securities secured by properties primarily in the multifamily, life science, mixed-use, hospitality, self storage, industrial, and retail real estate sectors. The company qualifies as a real estate investment trust for federal income tax purposes. It generally would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. TPG RE Finance Trust, Inc. was incorporated in 2014 and is based in New York, New York.
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