First Industrial Realty Trust (NYSE: FR) and Prologis (NYSE:PLD) are both mid-cap finance companies, but which is the better stock? We will compare the two companies based on the strength of their risk, institutional ownership, analyst recommendations, earnings, dividends, valuation and profitabiliy.

Valuation and Earnings

This table compares First Industrial Realty Trust and Prologis’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
First Industrial Realty Trust $386.50 million 9.30 $254.02 million $0.98 30.61
Prologis $2.94 billion 11.00 $1.96 billion $2.22 27.38

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.

Profitability

This table compares First Industrial Realty Trust and Prologis’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
First Industrial Realty Trust 29.91% 8.88% 4.12%
Prologis 43.99% 6.65% 3.95%

Dividends

First Industrial Realty Trust pays an annual dividend of $0.84 per share and has a dividend yield of 2.8%. Prologis pays an annual dividend of $1.76 per share and has a dividend yield of 2.9%. First Industrial Realty Trust pays out 85.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. 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 has raised its dividend for 3 consecutive years and Prologis has raised its dividend for 3 consecutive years. Prologis is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for First Industrial Realty Trust and Prologis, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
First Industrial Realty Trust 0 3 1 0 2.25
Prologis 0 4 11 0 2.73

First Industrial Realty Trust currently has a consensus price target of $29.75, suggesting a potential downside of 0.83%. Prologis has a consensus price target of $58.93, suggesting a potential downside of 3.05%. Given First Industrial Realty Trust’s higher probable upside, equities research analysts clearly believe First Industrial Realty Trust is more favorable than Prologis.

Volatility and Risk

First Industrial Realty Trust has a beta of 1, indicating that its stock price has a similar volatility profile to 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.

Institutional and Insider Ownership

91.8% of First Industrial Realty Trust shares are owned by institutional investors. Comparatively, 95.3% of Prologis shares are owned by institutional investors. 1.8% of First Industrial Realty Trust 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 stock will outperform the market over the long term.

Summary

Prologis beats First Industrial Realty Trust on 11 of the 16 factors compared between the two stocks.

First Industrial Realty Trust Company Profile

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.

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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