Contrasting Service Properties Trust (NASDAQ:SVC) and LSL Property Services (OTCMKTS:LSLPF)

LSL Property Services (OTCMKTS:LSLPF) and Service Properties Trust (NASDAQ:SVC) are both small-cap finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, profitability, earnings, risk, analyst recommendations, institutional ownership and dividends.

Risk and Volatility

LSL Property Services has a beta of 1, meaning that its share price has a similar volatility profile to the S&P 500.Comparatively, Service Properties Trust has a beta of 1.8, meaning that its share price is 80% more volatile than the S&P 500.

Profitability

This table compares LSL Property Services and Service Properties Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
LSL Property Services	N/A	N/A	N/A
Service Properties Trust	-12.87%	-22.67%	-3.37%

Institutional and Insider Ownership

77.6% of Service Properties Trust shares are owned by institutional investors. 1.4% of Service Properties Trust shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares LSL Property Services and Service Properties Trust”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
LSL Property Services	N/A	N/A	N/A	N/A	N/A
Service Properties Trust	$1.90 billion	0.16	-$32.78 million	($1.67)	-1.10

LSL Property Services has higher earnings, but lower revenue than Service Properties Trust.

Analyst Recommendations

This is a breakdown of current ratings and price targets for LSL Property Services and Service Properties Trust, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
LSL Property Services	0	0	0	0	0.00
Service Properties Trust	0	0	2	0	3.00

Service Properties Trust has a consensus price target of $6.00, indicating a potential upside of 227.87%. Given Service Properties Trust’s stronger consensus rating and higher possible upside, analysts plainly believe Service Properties Trust is more favorable than LSL Property Services.

Summary

Service Properties Trust beats LSL Property Services on 7 of the 10 factors compared between the two stocks.

About LSL Property Services

LSL Property Services plc, together with its subsidiaries, engages in the provision of business-to-business services to mortgage intermediaries and estate agency franchisees, and valuation services to lenders in the United Kingdom. The company operates through three segments: Financial Services, Surveying & Valuation, and Estate Agency Franchising. The Financial Services segment offers compliance and other services to mortgage and insurance networks. The Surveying & Valuation segment provides valuations and professional surveying services of residential properties to various lenders and individual customers; data services to lenders; and asset management services, including managing the sale of residential properties on behalf of corporate clients and property investors. The Estate Agency Franchising segment offers brand marketing, and commercial and information technology support services under brands, including Your Move and Reeds Rains, as well as various local brands; repossession services; and conveyancing panel management and support services to its franchisees and their customers. It also offers business and domestic software development; and conveyancing packaging services. The company was incorporated in 2004 and is based in Newcastle upon Tyne, the United Kingdom.

About Service Properties Trust

Service Properties Trust (Nasdaq: SVC) is a real estate investment trust with over $11 billion invested in two asset categories: hotels and service-focused retail net lease properties. As of December 31, 2023, SVC owned 221 hotels with over 37,000 guest rooms throughout the United States and in Puerto Rico and Canada, the majority of which are extended stay and select service. As of December 31, 2023, SVC also owned 752 service-focused retail net lease properties totaling approximately 13.3 million square feet throughout the United States. SVC 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. SVC is headquartered in Newton, MA.