Prologis (PLD) & Stag Industrial (STAG) Head-To-Head Analysis

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

Dividends

Prologis pays an annual dividend of $1.76 per share and has a dividend yield of 2.9%. Stag Industrial pays an annual dividend of $1.41 per share and has a dividend yield of 5.3%. 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. Stag Industrial pays out 503.6% 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 has raised its dividend for 6 consecutive years and Stag Industrial has raised its dividend for 3 consecutive years.

Valuation & Earnings

This table compares Prologis and Stag Industrial’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Prologis $2.94 billion 10.80 $1.96 billion $2.22 26.90
Stag Industrial $270.80 million 9.09 $185.80 million $0.28 95.36

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

Volatility & Risk

Prologis has a beta of 0.94, indicating that its stock price is 6% less volatile than the S&P 500. Comparatively, Stag Industrial has a beta of 1.22, indicating that its stock price is 22% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and target prices for Prologis and Stag Industrial, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Prologis 0 4 11 0 2.73
Stag Industrial 0 1 6 0 2.86

Prologis presently has a consensus price target of $58.93, indicating a potential downside of 1.31%. Stag Industrial has a consensus price target of $26.92, indicating a potential upside of 0.81%. Given Stag Industrial’s stronger consensus rating and higher possible upside, analysts clearly believe Stag Industrial is more favorable than Prologis.

Profitability

This table compares Prologis and Stag Industrial’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Prologis 43.99% 6.65% 3.95%
Stag Industrial 12.22% 3.97% 1.66%

Insider and Institutional Ownership

95.3% of Prologis shares are held by institutional investors. Comparatively, 74.4% of Stag Industrial shares are held by institutional investors. 1.3% of Prologis shares are held by company insiders. Comparatively, 2.0% of Stag Industrial shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Prologis beats Stag Industrial on 12 of the 17 factors compared between the two stocks.

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.

Stag Industrial Company Profile

STAG Industrial, Inc. is a real estate investment trust. The Company is focused on the acquisition, ownership, and operation of single-tenant, industrial properties across the United States. As of December 31, 2016, the Company owned 314 buildings in 37 states with approximately 60.9 million rentable square feet, consisting of 243 warehouse/distribution buildings, 54 light manufacturing buildings, 16 flex/office buildings, and one building in redevelopment. The Company owns all of its properties and conducts its business primarily through STAG Industrial Operating Partnership, L.P. (Operating Partnership). The Company invests in properties historically used for industrial, light manufacturing and commercial purposes. As of December 31, 2016, the Company’s properties were in various locations, such as Montgomery, Alabama; Rogers, Arkansas; Phoenix, Arizona; Sparks, Maryland; Camarillo, California, and Golden and Grand Junction in Colorado.

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