Paramount Group (NYSE:PGRE) versus Industrial Logistics Properties Trust (NASDAQ:ILPT) Financial Review

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

Earnings & Valuation

This table compares Industrial Logistics Properties Trust and Paramount Group”s 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	0.54	-$107.99 million	($1.57)	-2.29
Paramount Group	$763.66 million	1.38	-$259.74 million	($0.98)	-4.95

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

Profitability

This table compares Industrial Logistics Properties Trust and Paramount Group’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%
Paramount Group	-27.92%	-5.26%	-2.69%

Dividends

Industrial Logistics Properties Trust pays an annual dividend of $0.04 per share and has a dividend yield of 1.1%. Paramount Group pays an annual dividend of $0.14 per share and has a dividend yield of 2.9%. Industrial Logistics Properties Trust pays out -2.5% of its earnings in the form of a dividend. Paramount Group pays out -14.3% 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.

Institutional and Insider Ownership

49.1% of Industrial Logistics Properties Trust shares are held by institutional investors. Comparatively, 65.6% of Paramount Group shares are held by institutional investors. 1.8% of Industrial Logistics Properties Trust shares are held by company insiders. Comparatively, 13.5% of Paramount Group shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Industrial Logistics Properties Trust and Paramount Group, as reported by MarketBeat.

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

Industrial Logistics Properties Trust currently has a consensus target price of $10.00, indicating a potential upside of 177.78%. Paramount Group has a consensus target price of $4.50, indicating a potential downside of 7.22%. Given Industrial Logistics Properties Trust’s stronger consensus rating and higher possible upside, equities analysts clearly believe Industrial Logistics Properties Trust is more favorable than Paramount Group.

Volatility & Risk

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

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 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.