Critical Survey: Gramercy Property Trust (GPT) & Prologis (PLD)
Gramercy Property Trust (NYSE: GPT) and Prologis (NYSE:PLD) are both mid-cap finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, analyst recommendations, valuation, earnings, institutional ownership, profitability and dividends.
This is a breakdown of recent ratings and target prices for Gramercy Property Trust and Prologis, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Gramercy Property Trust||1||2||3||0||2.33|
Gramercy Property Trust currently has a consensus target price of $31.25, suggesting a potential upside of 8.54%. Prologis has a consensus target price of $65.08, suggesting a potential downside of 1.84%. Given Gramercy Property Trust’s higher probable upside, research analysts clearly believe Gramercy Property Trust is more favorable than Prologis.
Risk & Volatility
Gramercy Property Trust has a beta of 0.57, meaning that its share price is 43% 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.
Insider & Institutional Ownership
87.4% of Gramercy Property Trust shares are held by institutional investors. Comparatively, 95.5% of Prologis shares are held by institutional investors. 1.0% of Gramercy Property Trust shares are held by company insiders. Comparatively, 1.3% of Prologis shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Gramercy Property Trust pays an annual dividend of $1.50 per share and has a dividend yield of 5.2%. Prologis pays an annual dividend of $1.76 per share and has a dividend yield of 2.7%. Gramercy Property Trust pays out 340.9% 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 raised its dividend for 3 consecutive years and Prologis has raised its dividend for 2 consecutive years. Gramercy Property Trust is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
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||14.10%||2.60%||1.25%|
Valuation and Earnings
This table compares Gramercy Property Trust and Prologis’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Gramercy Property Trust||$517.26 million||8.94||$33.35 million||$0.44||65.43|
|Prologis||$2.53 billion||13.93||$1.21 billion||$3.33||19.91|
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.
Prologis beats Gramercy Property Trust on 14 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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