Financial Review: LXP Industrial Trust (NYSE:LXP) vs. Office Properties Income Trust (NASDAQ:OPI)

LXP Industrial Trust (NYSE:LXP) and Office Properties Income Trust (NASDAQ:OPI) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, dividends, risk, institutional ownership, profitability, analyst recommendations and valuation.

Dividends

LXP Industrial Trust pays an annual dividend of $0.54 per share and has a dividend yield of 7.0%. Office Properties Income Trust pays an annual dividend of $0.04 per share and has a dividend yield of 17.6%. LXP Industrial Trust pays out 192.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Office Properties Income Trust pays out -0.8% of its earnings in the form of a dividend. LXP Industrial Trust has raised its dividend for 3 consecutive years. Office Properties Income Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Ratings

This is a summary of recent recommendations and price targets for LXP Industrial Trust and Office Properties Income Trust, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
LXP Industrial Trust	0	2	1	0	2.33
Office Properties Income Trust	0	0	0	0	0.00

LXP Industrial Trust presently has a consensus target price of $10.50, suggesting a potential upside of 35.48%. Given LXP Industrial Trust’s stronger consensus rating and higher possible upside, equities research analysts plainly believe LXP Industrial Trust is more favorable than Office Properties Income Trust.

Volatility and Risk

LXP Industrial Trust has a beta of 1.03, suggesting that its share price is 3% more volatile than the S&P 500. Comparatively, Office Properties Income Trust has a beta of 1.57, suggesting that its share price is 57% more volatile than the S&P 500.

Insider and Institutional Ownership

93.5% of LXP Industrial Trust shares are held by institutional investors. Comparatively, 64.4% of Office Properties Income Trust shares are held by institutional investors. 2.6% of LXP Industrial Trust shares are held by insiders. Comparatively, 1.8% of Office Properties Income Trust shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares LXP Industrial Trust and Office Properties Income Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
LXP Industrial Trust	24.07%	4.34%	2.30%
Office Properties Income Trust	-62.99%	-25.56%	-8.02%

Earnings & Valuation

This table compares LXP Industrial Trust and Office Properties Income Trust”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
LXP Industrial Trust	$363.00 million	6.31	$44.53 million	$0.28	27.68
Office Properties Income Trust	$501.98 million	0.03	-$136.11 million	($4.90)	-0.05

LXP Industrial Trust has higher earnings, but lower revenue than Office Properties Income Trust. Office Properties Income Trust is trading at a lower price-to-earnings ratio than LXP Industrial Trust, indicating that it is currently the more affordable of the two stocks.

Summary

LXP Industrial Trust beats Office Properties Income Trust on 13 of the 17 factors compared between the two stocks.

About LXP Industrial Trust

LXP Industrial Trust (NYSE: LXP) is a publicly traded real estate investment trust (REIT) focused on single-tenant industrial real estate investments across the United States. LXP seeks to expand its industrial portfolio through acquisitions, build-to-suit transactions, sale-leaseback transactions, development projects and other transactions.

About Office Properties Income Trust

Office Properties Income Trust is a real estate investment trust. It owns, operates, and leases office buildings to single tenants and multi-tenant buildings. The company was founded on February 17, 2009 and is headquartered in Newton, MA.