Critical Comparison: Industrial Logistics Properties Trust (NASDAQ:ILPT) versus TPG RE Finance Trust (NYSE:TRTX)

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

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Industrial Logistics Properties Trust and TPG RE Finance Trust, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Industrial Logistics Properties Trust	0	1	1	0	2.50
TPG RE Finance Trust	1	0	5	0	2.67

Industrial Logistics Properties Trust presently has a consensus price target of $10.00, suggesting a potential upside of 151.26%. TPG RE Finance Trust has a consensus price target of $8.92, suggesting a potential upside of 3.92%. Given Industrial Logistics Properties Trust’s higher probable upside, analysts plainly believe Industrial Logistics Properties Trust is more favorable than TPG RE Finance Trust.

Insider & Institutional Ownership

49.1% of Industrial Logistics Properties Trust shares are held by institutional investors. Comparatively, 57.1% of TPG RE Finance Trust shares are held by institutional investors. 1.8% of Industrial Logistics Properties Trust shares are held by insiders. Comparatively, 2.5% of TPG RE Finance Trust shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Volatility & Risk

Industrial Logistics Properties Trust has a beta of 1.84, indicating that its share price is 84% more volatile than the S&P 500. Comparatively, TPG RE Finance Trust has a beta of 2.16, indicating that its share price is 116% more volatile than the S&P 500.

Earnings and Valuation

This table compares Industrial Logistics Properties Trust and TPG RE Finance Trust”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	$437.34 million	0.60	-$107.99 million	($1.57)	-2.54
TPG RE Finance Trust	$390.25 million	1.78	-$116.63 million	$0.69	12.43

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

Profitability

This table compares Industrial Logistics Properties Trust and TPG RE Finance Trust’s 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%
TPG RE Finance Trust	19.65%	-7.50%	-2.19%

Dividends

Industrial Logistics Properties Trust pays an annual dividend of $0.04 per share and has a dividend yield of 1.0%. TPG RE Finance Trust pays an annual dividend of $0.96 per share and has a dividend yield of 11.2%. Industrial Logistics Properties Trust pays out -2.5% of its earnings in the form of a dividend. TPG RE Finance Trust pays out 139.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Summary

TPG RE Finance Trust 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 TPG RE Finance Trust

TPG RE Finance Trust, Inc., a commercial real estate finance company, originates, acquires, and manages commercial mortgage loans and other commercial real estate-related debt instruments in the United States. It invests in commercial mortgage loans; subordinate mortgage interests, mezzanine loans, secured real estate securities, note financing, preferred equity, and miscellaneous debt instruments; and commercial real estate collateralized loan obligations and commercial mortgage-backed securities secured by properties primarily in the multifamily, life science, mixed-use, hospitality, self storage, industrial, and retail real estate sectors. The company qualifies as a real estate investment trust for federal income tax purposes. It generally would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. TPG RE Finance Trust, Inc. was incorporated in 2014 and is based in New York, New York.