Critical Comparison: One Liberty Properties (NYSE:OLP) and Industrial Logistics Properties Trust (NASDAQ:ILPT)

Industrial Logistics Properties Trust (NASDAQ:ILPT) and One Liberty Properties (NYSE:OLP) are both small-cap real estate companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, earnings, risk, valuation, analyst recommendations, profitability and institutional ownership.

Profitability

This table compares Industrial Logistics Properties Trust and One Liberty Properties’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Industrial Logistics Properties Trust	-10.37%	-5.34%	-0.91%
One Liberty Properties	33.51%	11.52%	4.06%

Volatility & Risk

Industrial Logistics Properties Trust has a beta of 2.49, indicating that its stock price is 149% more volatile than the S&P 500. Comparatively, One Liberty Properties has a beta of 0.87, indicating that its stock price is 13% less volatile than the S&P 500.

Dividends

Industrial Logistics Properties Trust pays an annual dividend of $0.40 per share and has a dividend yield of 4.8%. One Liberty Properties pays an annual dividend of $1.80 per share and has a dividend yield of 7.3%. Industrial Logistics Properties Trust pays out -55.6% of its earnings in the form of a dividend. One Liberty Properties pays out 113.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Industrial Logistics Properties Trust and One Liberty Properties, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Industrial Logistics Properties Trust	1	1	1	0	2.00
One Liberty Properties	1	0	1	1	2.67

Industrial Logistics Properties Trust currently has a consensus target price of $11.50, indicating a potential upside of 37.07%. One Liberty Properties has a consensus target price of $28.50, indicating a potential upside of 16.04%. Given Industrial Logistics Properties Trust’s higher possible upside, equities research analysts plainly believe Industrial Logistics Properties Trust is more favorable than One Liberty Properties.

Valuation & Earnings

This table compares Industrial Logistics Properties Trust and One Liberty Properties”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Industrial Logistics Properties Trust	$448.85 million	1.25	-$66.19 million	($0.72)	-11.65
One Liberty Properties	$97.23 million	5.53	$25.47 million	$1.59	15.45

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

Institutional and Insider Ownership

49.1% of Industrial Logistics Properties Trust shares are owned by institutional investors. Comparatively, 36.2% of One Liberty Properties shares are owned by institutional investors. 2.3% of Industrial Logistics Properties Trust shares are owned by insiders. Comparatively, 26.2% of One Liberty Properties shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

One Liberty Properties 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 One Liberty Properties

One Liberty Properties, Inc. is a real estate investment trust, which engages in acquisition, ownership, and management of the geographically diversified portfolio consisting primarily of industrial, retail, restaurant, health and fitness, and theater properties, many of which are subject to long-term leases. The properties in the firm’s portfolio include net leases, long-term lease, and scheduled rent increases. The company was founded in December 1982 and is headquartered in Great Neck, NY.