Reviewing CareTrust REIT (NYSE:CTRE) and Industrial Logistics Properties Trust (NASDAQ:ILPT)

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

Institutional and Insider Ownership

49.1% of Industrial Logistics Properties Trust shares are owned by institutional investors. Comparatively, 87.8% of CareTrust REIT shares are owned by institutional investors. 1.8% of Industrial Logistics Properties Trust shares are owned by company insiders. Comparatively, 0.5% of CareTrust REIT shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Dividends

Industrial Logistics Properties Trust pays an annual dividend of $0.20 per share and has a dividend yield of 3.4%. CareTrust REIT pays an annual dividend of $1.34 per share and has a dividend yield of 3.4%. Industrial Logistics Properties Trust pays out -19.8% of its earnings in the form of a dividend. CareTrust REIT pays out 86.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Industrial Logistics Properties Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares Industrial Logistics Properties Trust and CareTrust REIT’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%
CareTrust REIT	67.28%	8.98%	6.83%

Earnings & Valuation

This table compares Industrial Logistics Properties Trust and CareTrust REIT”s 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	0.87	-$95.67 million	($1.01)	-5.78
CareTrust REIT	$476.39 million	18.73	$320.54 million	$1.55	25.79

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

Volatility and Risk

Industrial Logistics Properties Trust has a beta of 2.48, indicating that its stock price is 148% more volatile than the S&P 500. Comparatively, CareTrust REIT has a beta of 0.75, indicating that its stock price is 25% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Industrial Logistics Properties Trust and CareTrust REIT, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Industrial Logistics Properties Trust	1	1	0	1	2.33
CareTrust REIT	0	1	1	3	3.40

Industrial Logistics Properties Trust currently has a consensus price target of $5.00, suggesting a potential downside of 14.38%. CareTrust REIT has a consensus price target of $43.00, suggesting a potential upside of 7.58%. Given CareTrust REIT’s stronger consensus rating and higher probable upside, analysts clearly believe CareTrust REIT is more favorable than Industrial Logistics Properties Trust.

Summary

CareTrust REIT 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 CareTrust REIT

CareTrust REIT, Inc. is a self-administered, publicly-traded real estate investment trust engaged in the ownership, acquisition, development and leasing of skilled nursing, seniors housing and other healthcare-related properties. With a nationwide portfolio of long-term net-leased properties, and a growing portfolio of quality operators leasing them, CareTrust REIT is pursuing both external and organic growth opportunities across the United States.