CubeSmart (NYSE:CUBE – Get Free Report) and Industrial Logistics Properties Trust (NASDAQ:ILPT – Get Free Report) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, earnings, profitability, institutional ownership, dividends and risk.
Valuation and Earnings
This table compares CubeSmart and Industrial Logistics Properties Trust”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| CubeSmart | $1.12 billion | 8.26 | $333.78 million | $1.42 | 28.86 |
| Industrial Logistics Properties Trust | $453.36 million | 1.31 | -$66.19 million | ($0.82) | -10.90 |
Profitability
This table compares CubeSmart and Industrial Logistics Properties Trust’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| CubeSmart | 28.93% | 11.84% | 4.90% |
| Industrial Logistics Properties Trust | -11.93% | -5.93% | -1.04% |
Volatility & Risk
CubeSmart has a beta of 1.08, indicating that its share price is 8% more volatile than the S&P 500. Comparatively, Industrial Logistics Properties Trust has a beta of 2.5, indicating that its share price is 150% more volatile than the S&P 500.
Institutional and Insider Ownership
97.6% of CubeSmart shares are held by institutional investors. Comparatively, 49.1% of Industrial Logistics Properties Trust shares are held by institutional investors. 1.8% of CubeSmart shares are held by insiders. Comparatively, 2.3% 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 stock is poised for long-term growth.
Dividends
CubeSmart pays an annual dividend of $2.12 per share and has a dividend yield of 5.2%. Industrial Logistics Properties Trust pays an annual dividend of $0.20 per share and has a dividend yield of 2.2%. CubeSmart pays out 149.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Industrial Logistics Properties Trust pays out -24.4% of its earnings in the form of a dividend. CubeSmart has increased its dividend for 16 consecutive years. CubeSmart is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Analyst Recommendations
This is a summary of current recommendations and price targets for CubeSmart and Industrial Logistics Properties Trust, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| CubeSmart | 0 | 10 | 4 | 0 | 2.29 |
| Industrial Logistics Properties Trust | 1 | 0 | 1 | 1 | 2.67 |
CubeSmart presently has a consensus price target of $43.00, indicating a potential upside of 4.94%. Industrial Logistics Properties Trust has a consensus price target of $7.40, indicating a potential downside of 17.24%. Given CubeSmart’s higher probable upside, analysts clearly believe CubeSmart is more favorable than Industrial Logistics Properties Trust.
Summary
CubeSmart beats Industrial Logistics Properties Trust on 13 of the 18 factors compared between the two stocks.
About CubeSmart
CubeSmart is a self-administered and self-managed real estate investment trust. The Company's self-storage properties are designed to offer affordable, easily accessible and, in most locations, climate-controlled storage space for residential and commercial customers. According to the 2023 Self-Storage Almanac, CubeSmart is one of the top three owners and operators of self-storage properties in the United States.
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.
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