Head-To-Head Analysis: Community Healthcare Trust (NYSE:CHCT) vs. Industrial Logistics Properties Trust (NASDAQ:ILPT)

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

Analyst Recommendations

This is a breakdown of current recommendations for Community Healthcare Trust and Industrial Logistics Properties Trust, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Community Healthcare Trust	1	1	2	0	2.25
Industrial Logistics Properties Trust	1	1	0	1	2.33

Community Healthcare Trust presently has a consensus target price of $18.00, indicating a potential upside of 13.82%. Industrial Logistics Properties Trust has a consensus target price of $5.00, indicating a potential downside of 9.01%. Given Community Healthcare Trust’s higher possible upside, equities analysts clearly believe Community Healthcare Trust is more favorable than Industrial Logistics Properties Trust.

Institutional and Insider Ownership

87.8% of Community Healthcare Trust shares are owned by institutional investors. Comparatively, 49.1% of Industrial Logistics Properties Trust shares are owned by institutional investors. 5.1% of Community Healthcare Trust shares are owned by insiders. Comparatively, 1.8% of Industrial Logistics Properties Trust shares are owned by 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

Community Healthcare Trust pays an annual dividend of $1.90 per share and has a dividend yield of 12.0%. Industrial Logistics Properties Trust pays an annual dividend of $0.20 per share and has a dividend yield of 3.6%. Community Healthcare Trust pays out -475.0% of its earnings in the form of a dividend. Industrial Logistics Properties Trust pays out -14.8% 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. Community Healthcare Trust has raised its dividend for 3 consecutive years. Community Healthcare Trust is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Risk & Volatility

Community Healthcare Trust has a beta of 0.77, meaning that its share price is 23% less volatile than the S&P 500. Comparatively, Industrial Logistics Properties Trust has a beta of 2.49, meaning that its share price is 149% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Community Healthcare Trust	-6.27%	-1.66%	-0.76%
Industrial Logistics Properties Trust	-19.87%	-9.20%	-1.67%

Valuation and Earnings

This table compares Community Healthcare Trust and Industrial Logistics Properties Trust”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Community Healthcare Trust	$115.79 million	3.89	-$3.18 million	($0.40)	-39.54
Industrial Logistics Properties Trust	$442.32 million	0.83	-$95.67 million	($1.35)	-4.07

Community Healthcare Trust has higher earnings, but lower revenue than Industrial Logistics Properties Trust. Community Healthcare 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.

Summary

Community Healthcare Trust beats Industrial Logistics Properties Trust on 13 of the 18 factors compared between the two stocks.

About Community Healthcare Trust

Community Healthcare Trust Incorporated (the Company”, we”, our”) was organized in the State of Maryland on March 28, 2014. The Company is a fully-integrated healthcare real estate company that owns and acquires real estate properties that are leased to hospitals, doctors, healthcare systems or other healthcare service providers. As of March 31, 2024, the Company had investments of approximately $1.1 billion in 197 real estate properties (including a portion of one property accounted for as a sales-type lease with a gross amount totaling approximately $3.0 million and two properties classified as an asset held for sale with an aggregate amount totaling approximately $7.5 million. The properties are located in 35 states, totaling approximately 4.4 million square feet in the aggregate and were approximately 92.3% leased, excluding real estate assets held for sale, at March 31, 2024 with a weighted average remaining lease term of approximately 6.9 years.

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.