Ready Capital (NYSE:RC – Get Rating) and Industrial Logistics Properties Trust (NASDAQ:ILPT – Get Rating) are both small-cap finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their dividends, institutional ownership, valuation, earnings, analyst recommendations, profitability and risk.
Ready Capital pays an annual dividend of $1.68 per share and has a dividend yield of 11.6%. Industrial Logistics Properties Trust pays an annual dividend of $1.32 per share and has a dividend yield of 8.9%. Ready Capital pays out 72.4% of its earnings in the form of a dividend. Industrial Logistics Properties Trust pays out 91.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Ready Capital is clearly the better dividend stock, given its higher yield and lower payout ratio.
This table compares Ready Capital and Industrial Logistics Properties Trust’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Industrial Logistics Properties Trust||39.59%||8.09%||3.13%|
Valuation & Earnings
This table compares Ready Capital and Industrial Logistics Properties Trust’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Ready Capital||$403.50 million||3.02||$157.74 million||$2.32||6.25|
|Industrial Logistics Properties Trust||$219.87 million||4.40||$119.68 million||$1.44||10.26|
Ready Capital has higher revenue and earnings than Industrial Logistics Properties Trust. Ready Capital 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.
This is a summary of recent ratings for Ready Capital and Industrial Logistics Properties Trust, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Industrial Logistics Properties Trust||0||3||1||0||2.25|
Ready Capital currently has a consensus target price of $17.50, indicating a potential upside of 20.69%. Industrial Logistics Properties Trust has a consensus target price of $27.75, indicating a potential upside of 87.75%. Given Industrial Logistics Properties Trust’s higher possible upside, analysts clearly believe Industrial Logistics Properties Trust is more favorable than Ready Capital.
Volatility and Risk
Ready Capital has a beta of 1.05, indicating that its stock price is 5% more volatile than the S&P 500. Comparatively, Industrial Logistics Properties Trust has a beta of 1.23, indicating that its stock price is 23% more volatile than the S&P 500.
Insider and Institutional Ownership
41.0% of Ready Capital shares are owned by institutional investors. Comparatively, 85.2% of Industrial Logistics Properties Trust shares are owned by institutional investors. 1.7% of Ready Capital shares are owned by company insiders. Comparatively, 1.5% of Industrial Logistics Properties Trust shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Ready Capital beats Industrial Logistics Properties Trust on 10 of the 16 factors compared between the two stocks.
Ready Capital Company Profile (Get Rating)
Ready Capital Corporation operates as a real estate finance company in the United States. The company acquires, originates, manages, services, and finances small to medium balance commercial (SBC) loans, small business administration (SBA) loans, residential mortgage loans, and mortgage backed securities collateralized primarily by SBC loans, or other real estate-related investments. It operates through three segments: SBC Lending and Acquisitions; Small Business Lending; and Residential Mortgage Banking. The SBC Lending and Acquisitions segment, through its subsidiary, ReadyCap Commercial, LLC, originate SBC loans secured by stabilized or transitional investor properties using various loan origination channels. The Small Business Lending segment, through its subsidiary, ReadyCap Lending, LLC, acquires, originates, and services owner-occupied loans guaranteed by the SBA under its SBA Section 7(a) Program. The Residential Mortgage Banking segment, through its subsidiary, GMFS, LLC, originates residential mortgage loans. The company qualifies as a real estate investment trust for federal income tax purposes. It generally would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. The company was formerly known as Sutherland Asset Management Corporation and changed its name to Ready Capital Corporation in September 2018. Ready Capital Corporation was founded in 2007 and is headquartered in New York, New York.
Industrial Logistics Properties Trust Company Profile (Get Rating)
ILPT is a real estate investment trust, or REIT, that owns and leases industrial and logistics properties throughout the United States. ILPT is managed by the operating subsidiary of The RMR Group Inc. (Nasdaq: RMR), an alternative asset management company that is headquartered in Newton, MA.
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