Analyzing Industrial Logistics Properties Trust (NASDAQ:ILPT) and Pebblebrook Hotel Trust (NYSE:PEB)

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

Profitability

This table compares Pebblebrook Hotel Trust and Industrial Logistics Properties Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Pebblebrook Hotel Trust	-5.18%	-2.88%	-1.38%
Industrial Logistics Properties Trust	-14.75%	-7.08%	-1.26%

Risk and Volatility

Pebblebrook Hotel Trust has a beta of 1.48, meaning that its share price is 48% more volatile than the S&P 500. Comparatively, Industrial Logistics Properties Trust has a beta of 2.46, meaning that its share price is 146% more volatile than the S&P 500.

Dividends

Pebblebrook Hotel Trust pays an annual dividend of $0.04 per share and has a dividend yield of 0.3%. Industrial Logistics Properties Trust pays an annual dividend of $0.20 per share and has a dividend yield of 3.1%. Pebblebrook Hotel Trust pays out -4.4% of its earnings in the form of a dividend. Industrial Logistics Properties Trust pays out -19.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Industrial Logistics Properties Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.

Institutional and Insider Ownership

49.1% of Industrial Logistics Properties Trust shares are held by institutional investors. 3.1% of Pebblebrook Hotel Trust shares are held by insiders. Comparatively, 1.8% of Industrial Logistics Properties Trust shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pebblebrook Hotel Trust	$1.48 billion	1.00	-$65.81 million	($0.91)	-14.32
Industrial Logistics Properties Trust	$448.85 million	0.95	-$66.19 million	($1.01)	-6.36

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

Analyst Ratings

This is a summary of recent ratings and recommmendations for Pebblebrook Hotel Trust and Industrial Logistics Properties Trust, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pebblebrook Hotel Trust	6	5	1	1	1.77
Industrial Logistics Properties Trust	1	1	0	1	2.33

Pebblebrook Hotel Trust presently has a consensus target price of $12.09, suggesting a potential downside of 7.21%. Industrial Logistics Properties Trust has a consensus target price of $6.20, suggesting a potential downside of 3.43%. Given Industrial Logistics Properties Trust’s stronger consensus rating and higher probable upside, analysts clearly believe Industrial Logistics Properties Trust is more favorable than Pebblebrook Hotel Trust.

About Pebblebrook Hotel Trust

Pebblebrook Hotel Trust (NYSE: PEB) is a publicly traded real estate investment trust ("REIT") and the largest owner of urban and resort lifestyle hotels and resorts in the United States. The Company owns 47 hotels and resorts, totaling approximately 12,200 guest rooms across 13 urban and resort markets.

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.