Duke Realty Corporation (NYSE: DRE) and Prologis (NYSE:PLD) are both large-cap finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, analyst recommendations, risk, profitability, earnings, institutional ownership and dividends.

Volatility and Risk

Duke Realty Corporation has a beta of 0.94, indicating that its stock price is 6% less volatile than the S&P 500. Comparatively, Prologis has a beta of 0.94, indicating that its stock price is 6% less volatile than the S&P 500.

Dividends

Duke Realty Corporation pays an annual dividend of $0.76 per share and has a dividend yield of 2.6%. Prologis pays an annual dividend of $1.76 per share and has a dividend yield of 2.8%. Duke Realty Corporation pays out 18.9% of its earnings in the form of a dividend. 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. Duke Realty Corporation has raised its dividend for 3 consecutive years and Prologis has raised its dividend for 2 consecutive years.

Analyst Recommendations

This is a summary of current ratings and price targets for Duke Realty Corporation and Prologis, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Duke Realty Corporation 0 4 6 0 2.60
Prologis 0 4 11 0 2.73

Duke Realty Corporation currently has a consensus price target of $29.00, indicating a potential downside of 2.42%. Prologis has a consensus price target of $59.36, indicating a potential downside of 6.32%. Given Duke Realty Corporation’s higher probable upside, research analysts clearly believe Duke Realty Corporation is more favorable than Prologis.

Valuation and Earnings

This table compares Duke Realty Corporation and Prologis’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Duke Realty Corporation $922.63 million 11.46 $508.55 million $4.03 7.37
Prologis $2.94 billion 11.46 $1.96 billion $2.22 28.54

Prologis has higher revenue and earnings than Duke Realty Corporation. Duke Realty Corporation is trading at a lower price-to-earnings ratio than Prologis, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Duke Realty Corporation and Prologis’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Duke Realty Corporation 166.06% 8.72% 4.74%
Prologis 43.99% 6.65% 3.95%

Institutional and Insider Ownership

93.7% of Duke Realty Corporation shares are owned by institutional investors. Comparatively, 96.0% of Prologis shares are owned by institutional investors. 0.3% of Duke Realty Corporation shares are owned by company insiders. Comparatively, 1.3% of Prologis shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

Prologis beats Duke Realty Corporation on 9 of the 16 factors compared between the two stocks.

Duke Realty Corporation Company Profile

Duke Realty Corporation is a self-managed real estate investment trust (REIT). The Company and Duke Realty Limited Partnership collectively specialize in the ownership, management and development of bulk distribution (industrial) and medical office real estate. It operates through three segments, the first two of which consist of the ownership and rental of industrial and medical office real estate investments. The operations of its industrial and medical office properties, as well as its rental operations, are collectively referred to as Rental Operations. The third segment includes real estate services, such as property management, asset management, leasing, development, general contracting and construction management. Its Service Operations segment also includes its taxable REIT subsidiary, through which certain of the segment’s operations are conducted. It maintains a Baa1 rating from Moody’s Investor Service, Inc. and a BBB+ rating from Standard & Poor’s Financial Services LLC.

Prologis Company Profile

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.

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