First Industrial Realty Trust (NYSE:FR) versus Equity LifeStyle Properties (NYSE:ELS) Critical Comparison

Equity LifeStyle Properties (NYSE:ELS) and First Industrial Realty Trust (NYSE:FR) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, institutional ownership, profitability, valuation, analyst recommendations, risk and earnings.

Risk and Volatility

Equity LifeStyle Properties has a beta of 0.79, indicating that its share price is 21% less volatile than the S&P 500. Comparatively, First Industrial Realty Trust has a beta of 1.09, indicating that its share price is 9% more volatile than the S&P 500.

Institutional and Insider Ownership

97.2% of Equity LifeStyle Properties shares are owned by institutional investors. Comparatively, 99.9% of First Industrial Realty Trust shares are owned by institutional investors. 1.4% of Equity LifeStyle Properties shares are owned by company insiders. Comparatively, 0.9% of First Industrial Realty Trust shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Equity LifeStyle Properties and First Industrial Realty Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Equity LifeStyle Properties	24.05%	23.12%	6.51%
First Industrial Realty Trust	42.94%	10.64%	5.51%

Dividends

Equity LifeStyle Properties pays an annual dividend of $2.06 per share and has a dividend yield of 3.2%. First Industrial Realty Trust pays an annual dividend of $1.48 per share and has a dividend yield of 2.7%. Equity LifeStyle Properties pays out 105.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. First Industrial Realty Trust pays out 67.9% of its earnings in the form of a dividend. Equity LifeStyle Properties has increased its dividend for 21 consecutive years and First Industrial Realty Trust has increased its dividend for 12 consecutive years. Equity LifeStyle Properties is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Equity LifeStyle Properties and First Industrial Realty Trust, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Equity LifeStyle Properties	0	3	6	1	2.80
First Industrial Realty Trust	1	6	7	0	2.43

Equity LifeStyle Properties presently has a consensus price target of $73.78, indicating a potential upside of 13.10%. First Industrial Realty Trust has a consensus price target of $57.77, indicating a potential upside of 3.85%. Given Equity LifeStyle Properties’ stronger consensus rating and higher probable upside, equities analysts plainly believe Equity LifeStyle Properties is more favorable than First Industrial Realty Trust.

Earnings & Valuation

This table compares Equity LifeStyle Properties and First Industrial Realty Trust”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Equity LifeStyle Properties	$1.43 billion	8.69	$367.01 million	$1.95	33.45
First Industrial Realty Trust	$669.64 million	10.99	$287.55 million	$2.18	25.52

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

Summary

Equity LifeStyle Properties beats First Industrial Realty Trust on 11 of the 18 factors compared between the two stocks.

About Equity LifeStyle Properties

Equity LifeStyle Properties, Inc. is a real estate investment trust, which engages in the ownership and operation of lifestyle-oriented properties consisting primarily of manufactured home, and recreational vehicle communities. It operates through the following segments: Property Operations and Home Sales and Rentals Operations. The Property Operations segment owns and operates land lease properties. The Home Sales and Rentals Operations segment purchases, sells, and leases homes. The company was founded by James M. Hankins in December 1992 and is headquartered in Chicago, IL.

About First Industrial Realty Trust

First Industrial Realty Trust, Inc. (NYSE: FR) is a leading U.S.-only owner, operator, developer and acquirer of logistics properties. Through our fully integrated operating and investing platform, we provide high quality facilities and industry-leading customer service to multinational corporations and regional firms that are essential for their supply chains. Our portfolio and new investments are concentrated in 15 target MSAs with an emphasis on supply-constrained, coastally oriented markets. In total, we own and have under development approximately 68.5 million square feet of industrial space as of December 31, 2023.