Boston Properties (NYSE:BXP) versus Industrial Logistics Properties Trust (NASDAQ:ILPT) Critical Review

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

Analyst Ratings

This is a summary of recent ratings and target prices for Industrial Logistics Properties Trust and Boston Properties, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Industrial Logistics Properties Trust	0	1	1	0	2.50
Boston Properties	0	7	6	0	2.46

Industrial Logistics Properties Trust presently has a consensus target price of $10.00, suggesting a potential upside of 177.78%. Boston Properties has a consensus target price of $81.38, suggesting a potential upside of 9.08%. Given Industrial Logistics Properties Trust’s stronger consensus rating and higher possible upside, research analysts clearly believe Industrial Logistics Properties Trust is more favorable than Boston Properties.

Valuation and Earnings

This table compares Industrial Logistics Properties Trust and Boston 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	$440.70 million	0.54	-$107.99 million	($1.57)	-2.29
Boston Properties	$3.38 billion	3.49	$190.21 million	$2.31	32.30

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

Profitability

This table compares Industrial Logistics Properties Trust and Boston Properties’ 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%
Boston Properties	10.75%	4.40%	1.40%

Insider and Institutional Ownership

49.1% of Industrial Logistics Properties Trust shares are owned by institutional investors. Comparatively, 98.7% of Boston Properties shares are owned by institutional investors. 1.8% of Industrial Logistics Properties Trust shares are owned by insiders. Comparatively, 1.4% of Boston Properties shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments 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 1.1%. Boston Properties pays an annual dividend of $3.92 per share and has a dividend yield of 5.3%. Industrial Logistics Properties Trust pays out -2.5% of its earnings in the form of a dividend. Boston Properties pays out 169.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Risk & Volatility

Industrial Logistics Properties Trust has a beta of 1.83, indicating that its share price is 83% more volatile than the S&P 500. Comparatively, Boston Properties has a beta of 1.17, indicating that its share price is 17% more volatile than the S&P 500.

Summary

Boston 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 Boston Properties

Boston Properties, Inc. (NYSE: BXP) (BXP or the Company) is the largest publicly traded developer, owner, and manager of premier workplaces in the United States, concentrated in six dynamic gateway markets – Boston, Los Angeles, New York, San Francisco, Seattle, and Washington, DC. BXP has delivered places that power progress for our clients and communities for more than 50 years. BXP is a fully integrated real estate company, organized as a real estate investment trust (REIT). Including properties owned by joint ventures, BXP's portfolio totals 53.3 million square feet and 188 properties, including 10 properties under construction/redevelopment. BXP's properties include 167 office properties, 14 retail properties (including two retail properties under construction/redevelopment), six residential properties (including one residential property under construction) and one hotel. BXP is well-known for its inhouse building management expertise and responsiveness to clients' needs. BXP holds a superior track record of developing premium Central Business District (CBD) office buildings, successful mixed-use complexes, suburban office centers and build-to-suit projects for a diverse array of creditworthy clients. BXP actively works to promote its growth and operations in a sustainable and responsible manner. BXP has earned a twelfth consecutive GRESB Green Star recognition and the highest GRESB 5-star Rating. BXP, an S&P 500 company, was founded in 1970 by Mortimer B. Zuckerman and Edward H. Linde and became a public company in 1997.