Head-To-Head Contrast: Industrial Logistics Properties Trust (NASDAQ:ILPT) and Douglas Emmett (NYSE:DEI)

Industrial Logistics Properties Trust (NASDAQ:ILPT) and Douglas Emmett (NYSE:DEI) are both small-cap finance companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, valuation, dividends, risk, profitability, analyst recommendations and institutional ownership.

Analyst Ratings

This is a summary of recent recommendations and price targets for Industrial Logistics Properties Trust and Douglas Emmett, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Industrial Logistics Properties Trust	1	1	0	1	2.33
Douglas Emmett	1	8	1	0	2.00

Industrial Logistics Properties Trust currently has a consensus price target of $6.20, indicating a potential upside of 10.12%. Douglas Emmett has a consensus price target of $12.94, indicating a potential upside of 38.58%. Given Douglas Emmett’s higher possible upside, analysts clearly believe Douglas Emmett is more favorable than Industrial Logistics Properties Trust.

Dividends

Industrial Logistics Properties Trust pays an annual dividend of $0.20 per share and has a dividend yield of 3.6%. Douglas Emmett pays an annual dividend of $0.76 per share and has a dividend yield of 8.1%. Industrial Logistics Properties Trust pays out -19.8% of its earnings in the form of a dividend. Douglas Emmett pays out 844.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Earnings & Valuation

This table compares Industrial Logistics Properties Trust and Douglas Emmett”s top-line 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	0.84	-$66.19 million	($1.01)	-5.57
Douglas Emmett	$1.00 billion	1.56	$16.27 million	$0.09	103.73

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

Risk & Volatility

Industrial Logistics Properties Trust has a beta of 2.39, meaning that its stock price is 139% more volatile than the S&P 500. Comparatively, Douglas Emmett has a beta of 1.11, meaning that its stock price is 11% more volatile than the S&P 500.

Insider & Institutional Ownership

49.1% of Industrial Logistics Properties Trust shares are owned by institutional investors. Comparatively, 97.4% of Douglas Emmett shares are owned by institutional investors. 2.3% of Industrial Logistics Properties Trust shares are owned by company insiders. Comparatively, 15.1% of Douglas Emmett shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Industrial Logistics Properties Trust	-14.75%	-7.08%	-1.26%
Douglas Emmett	1.62%	0.46%	0.17%

Summary

Douglas Emmett beats Industrial Logistics Properties Trust on 13 of the 17 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 Douglas Emmett

Douglas Emmett, Inc. (DEI) is a fully integrated, self-administered and self-managed real estate investment trust (REIT), and one of the largest owners and operators of high-quality office and multifamily properties located in the premier coastal submarkets of Los Angeles and Honolulu. Douglas Emmett focuses on owning and acquiring a substantial share of top-tier office properties and premier multifamily communities in neighborhoods that possess significant supply constraints, high-end executive housing and key lifestyle amenities.