Terreno Realty (TRNO) and Its Rivals Critical Analysis

Terreno Realty (NYSE:TRNO) is one of 50 public companies in the “Industrial REITs” industry, but how does it contrast to its competitors? We will compare Terreno Realty to similar companies based on the strength of its risk, institutional ownership, analyst recommendations, dividends, earnings, profitability and valuation.

Profitability

This table compares Terreno Realty and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Terreno Realty	68.05%	8.10%	6.29%
Terreno Realty Competitors	38.05%	5.83%	2.72%

Dividends

Terreno Realty pays an annual dividend of $2.28 per share and has a dividend yield of 3.4%. Terreno Realty pays out 68.1% of its earnings in the form of a dividend. As a group, “Industrial REITs” companies pay a dividend yield of 4.5% and pay out 103.3% of their earnings in the form of a dividend. Terreno Realty has raised its dividend for 5 consecutive years.

Valuation and Earnings

This table compares Terreno Realty and its competitors top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Terreno Realty	$518.86 million	$402.99 million	19.96
Terreno Realty Competitors	$1.00 billion	$263.98 million	56.62

Terreno Realty’s competitors have higher revenue, but lower earnings than Terreno Realty. Terreno Realty is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Risk & Volatility

Terreno Realty has a beta of 0.98, meaning that its share price is 2% less volatile than the S&P 500. Comparatively, Terreno Realty’s competitors have a beta of 1.04, meaning that their average share price is 4% more volatile than the S&P 500.

Institutional and Insider Ownership

61.8% of shares of all “Industrial REITs” companies are owned by institutional investors. 1.9% of Terreno Realty shares are owned by company insiders. Comparatively, 5.6% of shares of all “Industrial REITs” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current recommendations for Terreno Realty and its competitors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Terreno Realty	2	2	11	1	2.69
Terreno Realty Competitors	420	2305	2555	76	2.43

Terreno Realty presently has a consensus price target of $73.88, suggesting a potential upside of 10.52%. As a group, “Industrial REITs” companies have a potential upside of 47.21%. Given Terreno Realty’s competitors higher possible upside, analysts plainly believe Terreno Realty has less favorable growth aspects than its competitors.

Summary

Terreno Realty beats its competitors on 8 of the 15 factors compared.

About Terreno Realty

Terreno Realty Corporation is a real estate investment trust that acquires, owns, and operates industrial properties. Its portfolio includes warehouses and distribution facilities, as well as other properties used for activities such as transportation, logistics, and light manufacturing. The company focuses on major coastal U.S. markets, including New York City, Northern New Jersey, Los Angeles, the San Francisco Bay Area, Seattle, and Miami. In addition to acquiring and leasing properties, Terreno pursues redevelopment and improvement projects to support its tenants’ industrial and distribution needs.