Head to Head Analysis: Industrial Logistics Properties Trust (NASDAQ:ILPT) versus Paramount Group (NYSE:PGRE)

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

Insider and Institutional Ownership

65.6% of Paramount Group shares are owned by institutional investors. Comparatively, 49.1% of Industrial Logistics Properties Trust shares are owned by institutional investors. 13.5% of Paramount Group 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 endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Dividends

Paramount Group pays an annual dividend of $0.14 per share and has a dividend yield of 2.8%. Industrial Logistics Properties Trust pays an annual dividend of $0.04 per share and has a dividend yield of 1.1%. Paramount Group pays out -14.3% of its earnings in the form of a dividend. Industrial Logistics Properties Trust pays out -2.5% 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. Paramount Group is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Paramount Group	-27.92%	-5.26%	-2.69%
Industrial Logistics Properties Trust	-23.33%	-9.31%	-1.87%

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Paramount Group	$763.66 million	1.44	-$259.74 million	($0.98)	-5.14
Industrial Logistics Properties Trust	$440.70 million	0.55	-$107.99 million	($1.57)	-2.34

Industrial Logistics Properties Trust has lower revenue, but higher earnings than Paramount Group. Paramount Group 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.

Volatility & Risk

Paramount Group has a beta of 1.23, meaning that its share price is 23% more volatile than the S&P 500. Comparatively, Industrial Logistics Properties Trust has a beta of 1.83, meaning that its share price is 83% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Paramount Group and Industrial Logistics Properties Trust, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Paramount Group	1	2	0	0	1.67
Industrial Logistics Properties Trust	0	1	1	0	2.50

Paramount Group currently has a consensus target price of $4.50, indicating a potential downside of 10.71%. Industrial Logistics Properties Trust has a consensus target price of $10.00, indicating a potential upside of 171.74%. Given Industrial Logistics Properties Trust’s stronger consensus rating and higher probable upside, analysts plainly believe Industrial Logistics Properties Trust is more favorable than Paramount Group.

About Paramount Group

Paramount Group, Inc. (“Paramount” or the “Company”) is a fully-integrated real estate investment trust that owns, operates, manages, acquires and redevelops high-quality, Class A office properties located in select central business district submarkets of New York and San Francisco. Paramount is focused on maximizing the value of its portfolio by leveraging the sought-after locations of its assets and its proven property management capabilities to attract and retain high-quality tenants.

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.