Contrasting Medalist Diversified REIT (NASDAQ:MDRR) and Industrial Logistics Properties Trust (NASDAQ:ILPT)

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

Earnings & Valuation

This table compares Medalist Diversified REIT and Industrial Logistics Properties Trust’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Medalist Diversified REIT	$10.38 million	1.17	-$4.57 million	($0.92)	-5.92
Industrial Logistics Properties Trust	$437.34 million	0.62	-$107.99 million	($1.64)	-2.53

Medalist Diversified REIT has higher earnings, but lower revenue than Industrial Logistics Properties Trust. Medalist Diversified REIT 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 Medalist Diversified REIT and Industrial Logistics Properties Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Medalist Diversified REIT	-19.20%	-21.37%	-4.03%
Industrial Logistics Properties Trust	-24.26%	-8.95%	-1.90%

Volatility & Risk

Medalist Diversified REIT has a beta of 0.89, meaning that its stock price is 11% less volatile than the S&P 500. Comparatively, Industrial Logistics Properties Trust has a beta of 1.76, meaning that its stock price is 76% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Medalist Diversified REIT and Industrial Logistics Properties Trust, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Medalist Diversified REIT	0	0	0	0	N/A
Industrial Logistics Properties Trust	0	0	0	0	N/A

Insider & Institutional Ownership

17.4% of Medalist Diversified REIT shares are held by institutional investors. Comparatively, 49.1% of Industrial Logistics Properties Trust shares are held by institutional investors. 16.9% of Medalist Diversified REIT shares are held by insiders. Comparatively, 1.8% of Industrial Logistics Properties Trust shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Dividends

Medalist Diversified REIT pays an annual dividend of $0.08 per share and has a dividend yield of 1.5%. Industrial Logistics Properties Trust pays an annual dividend of $0.04 per share and has a dividend yield of 1.0%. Medalist Diversified REIT pays out -8.7% of its earnings in the form of a dividend. Industrial Logistics Properties Trust pays out -2.4% 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. Medalist Diversified REIT is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Medalist Diversified REIT beats Industrial Logistics Properties Trust on 7 of the 13 factors compared between the two stocks.

About Medalist Diversified REIT

Medalist Diversified REIT Inc. is a Virginia-based real estate investment trust that specializes in acquiring, owning and managing commercial real estate in the Southeast region of the U.S. The Company's strategy is to focus on commercial real estate which is expected to provide an attractive balance of risk and returns. Medalist utilizes a rigorous, consistent and replicable process for sourcing and conducting due diligence of acquisitions.

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.