Gramercy Property Trust (NYSE: GPT) and Prologis (NYSE:PLD) are both mid-cap finance companies, but which is the better business? We will contrast the two businesses based on the strength of their earnings, risk, dividends, institutional ownership, profitability, valuation and analyst recommendations.

Profitability

This table compares Gramercy Property Trust and Prologis’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Gramercy Property Trust 4.35% 0.81% 0.40%
Prologis 68.50% 9.92% 5.99%

Insider and Institutional Ownership

86.8% of Gramercy Property Trust shares are owned by institutional investors. Comparatively, 95.9% of Prologis shares are owned by institutional investors. 1.4% of Gramercy Property Trust shares are owned by insiders. Comparatively, 1.3% of Prologis shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Gramercy Property Trust and Prologis’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Gramercy Property Trust $525.64 million 9.11 $368.69 million $0.09 331.04
Prologis $2.82 billion 12.63 $1.89 billion $3.33 19.30

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

Analyst Ratings

This is a summary of recent ratings and price targets for Gramercy Property Trust and Prologis, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Gramercy Property Trust 1 1 3 0 2.40
Prologis 0 3 12 0 2.80

Gramercy Property Trust currently has a consensus price target of $31.67, indicating a potential upside of 6.30%. Prologis has a consensus price target of $63.87, indicating a potential downside of 0.63%. Given Gramercy Property Trust’s higher probable upside, equities research analysts plainly believe Gramercy Property Trust is more favorable than Prologis.

Dividends

Gramercy Property Trust pays an annual dividend of $1.50 per share and has a dividend yield of 5.0%. Prologis pays an annual dividend of $1.76 per share and has a dividend yield of 2.7%. Gramercy Property Trust pays out 1,666.9% 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 pays out 52.9% of its earnings in the form of a dividend. Gramercy Property Trust has increased its dividend for 2 consecutive years and Prologis has increased its dividend for 3 consecutive years.

Volatility and Risk

Gramercy Property Trust has a beta of 0.58, meaning that its share price is 42% less volatile than the S&P 500. Comparatively, Prologis has a beta of 0.92, meaning that its share price is 8% less volatile than the S&P 500.

Summary

Prologis beats Gramercy Property Trust on 13 of the 17 factors compared between the two stocks.

Gramercy Property Trust Company Profile

Gramercy Property Trust is a real estate investment trust (REIT), which is an investor and asset manager of commercial real estate. The Company’s operating segments include Investments/Corporate and Asset Management. The Investments/Corporate segment includes all of its activities related to the investment and ownership of commercial properties located throughout the United States and Europe. The Asset Management segment includes substantially all of its activities related to asset and property management of commercial properties located throughout the United States and Europe. It is engaged in acquiring and managing single-tenant, net leased industrial, office and specialty properties. It focuses on income producing properties leased to tenants in markets in the United States and Europe. It earns revenues through rental revenues on properties that it owns in the United States and asset management revenues on properties owned by third parties in the United States and Europe.

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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