Industrial Logistics Properties Trust (NASDAQ:ILPT) vs. Extra Space Storage (NYSE:EXR) Head to Head Analysis

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

Dividends

Extra Space Storage pays an annual dividend of $6.48 per share and has a dividend yield of 4.5%. Industrial Logistics Properties Trust pays an annual dividend of $0.20 per share and has a dividend yield of 3.6%. Extra Space Storage pays out 140.6% 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 -14.3% of its earnings in the form of a dividend. Extra Space Storage has increased its dividend for 1 consecutive years. Extra Space Storage is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares Extra Space Storage and Industrial Logistics Properties Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Extra Space Storage	29.51%	6.69%	3.44%
Industrial Logistics Properties Trust	-20.73%	-9.25%	-1.71%

Risk and Volatility

Extra Space Storage has a beta of 1.11, meaning that its share price is 11% more volatile than the S&P 500. Comparatively, Industrial Logistics Properties Trust has a beta of 2.43, meaning that its share price is 143% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Extra Space Storage and Industrial Logistics Properties Trust, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Extra Space Storage	1	9	6	0	2.31
Industrial Logistics Properties Trust	2	0	0	1	2.00

Extra Space Storage currently has a consensus target price of $148.64, suggesting a potential upside of 3.96%. Industrial Logistics Properties Trust has a consensus target price of $5.00, suggesting a potential downside of 10.55%. Given Extra Space Storage’s stronger consensus rating and higher possible upside, analysts plainly believe Extra Space Storage is more favorable than Industrial Logistics Properties Trust.

Earnings and Valuation

This table compares Extra Space Storage 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
Extra Space Storage	$3.26 billion	9.32	$854.68 million	$4.61	31.01
Industrial Logistics Properties Trust	$442.32 million	0.84	-$95.67 million	($1.40)	-3.99

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

Insider and Institutional Ownership

99.1% of Extra Space Storage shares are held by institutional investors. Comparatively, 49.1% of Industrial Logistics Properties Trust shares are held by institutional investors. 1.4% of Extra Space Storage shares are held by company insiders. Comparatively, 1.8% of Industrial Logistics Properties Trust shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Extra Space Storage beats Industrial Logistics Properties Trust on 14 of the 18 factors compared between the two stocks.

About Extra Space Storage

Extra Space Storage Inc., headquartered in Salt Lake City, Utah, is a self-administered and self-managed REIT and a member of the S&P 500. As of December 31, 2023, the Company owned and/or operated 3,714 self-storage stores in 42 states and Washington, D.C. The Company's stores comprise approximately 2.6 million units and approximately 283.0 million square feet of rentable space operating under the Extra Space, Life Storage and Storage Express brands. The Company offers customers a wide selection of conveniently located and secure storage units across the country, including boat storage, RV storage and business storage. It is the largest operator of self-storage properties in 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.