Analyzing Prologis (PLD) & First Industrial Realty Trust (FR)
Prologis (NYSE: PLD) and First Industrial Realty Trust (NYSE:FR) are both mid-cap finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, profitabiliy, dividends, risk, valuation, analyst recommendations and institutional ownership.
Earnings and Valuation
This table compares Prologis and First Industrial Realty Trust’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Prologis||$2.94 billion||10.87||$1.96 billion||$2.22||27.16|
|First Industrial Realty Trust||$381.94 million||9.15||$247.95 million||$1.09||27.34|
Prologis has higher revenue and earnings than First Industrial Realty Trust. Prologis is trading at a lower price-to-earnings ratio than First Industrial Realty Trust, indicating that it is currently the more affordable of the two stocks.
This table compares Prologis and First Industrial Realty Trust’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|First Industrial Realty Trust||33.58%||10.10%||4.62%|
This is a summary of recent ratings and price targets for Prologis and First Industrial Realty Trust, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|First Industrial Realty Trust||0||3||1||0||2.25|
Prologis presently has a consensus target price of $58.46, suggesting a potential downside of 3.05%. First Industrial Realty Trust has a consensus target price of $29.38, suggesting a potential downside of 1.43%. Given First Industrial Realty Trust’s higher possible upside, analysts clearly believe First Industrial Realty Trust is more favorable than Prologis.
Insider & Institutional Ownership
96.0% of Prologis shares are held by institutional investors. Comparatively, 91.2% of First Industrial Realty Trust shares are held by institutional investors. 1.3% of Prologis shares are held by company insiders. Comparatively, 1.8% of First Industrial Realty Trust shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Volatility and Risk
Prologis has a beta of 0.94, indicating that its stock price is 6% less volatile than the S&P 500. Comparatively, First Industrial Realty Trust has a beta of 0.99, indicating that its stock price is 1% less volatile than the S&P 500.
Prologis pays an annual dividend of $1.76 per share and has a dividend yield of 2.9%. First Industrial Realty Trust pays an annual dividend of $0.84 per share and has a dividend yield of 2.8%. Prologis pays out 79.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. First Industrial Realty Trust pays out 77.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Prologis has raised its dividend for 3 consecutive years and First Industrial Realty Trust has raised its dividend for 3 consecutive years.
Prologis beats First Industrial Realty Trust on 9 of the 16 factors compared between the two stocks.
Prologis, Inc. is a real estate investment trust (REIT) company. The Company is engaged in logistics real estate business. The Company’s segments include Real Estate Operations and Strategic Capital. The Real estate operations segment consists of rental operations and development. The Company’s strategic capital segment includes asset management services, as well as services performed for unconsolidated co-investment ventures. Its strategic capital segment gives the Company access to third-party capital, both private and public. As of December 31, 2016, the Company owned or had investments in, on an owned basis or through co-investment ventures, properties and development projects across 676 million square feet (63 million square meters) in 20 countries spanning four continents.
About First Industrial Realty Trust
First Industrial Realty Trust, Inc. is a real estate investment trust (REIT). The Trust is a self-administered real estate company, which owns, manages, acquires, sells, develops and redevelops industrial real estate. As of December 31, 2016, the Company’s in-service portfolio consisted of 215 light industrial properties, 53 research and development (R&D)/flex properties, 167 bulk warehouse properties and 100 regional warehouse properties containing an aggregate of approximately 62.2 million square feet of gross leasable area (GLA) located in 23 states. The Company’s in-service portfolio includes all properties that have reached stabilized occupancy, developed and redeveloped properties and acquired properties that are occupied at acquisition or one year from the acquisition date. The Company’s operations are conducted primarily through the First Industrial, L.P. (the Operating Partnership), of which the Company is the sole general partner.
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