First Industrial Realty Trust (NYSE:FR – Get Free Report) and Prologis (NYSE:PLD – Get Free Report) are both real estate companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, analyst recommendations, valuation, profitability, earnings and risk.
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 | 46.12% | 12.60% | 6.19% |
| Prologis | 45.51% | 7.29% | 4.24% |
Risk & Volatility
First Industrial Realty Trust has a beta of 1.01, indicating that its share price is 1% more volatile than the S&P 500. Comparatively, Prologis has a beta of 1.27, indicating that its share price is 27% more volatile than the S&P 500.
Valuation and Earnings
This table compares First Industrial Realty Trust and Prologis”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| First Industrial Realty Trust | $727.08 million | 9.81 | $247.44 million | $2.69 | 20.00 |
| Prologis | $9.36 billion | 12.90 | $3.33 billion | $4.53 | 28.06 |
Prologis has higher revenue and earnings than First Industrial Realty Trust. First Industrial Realty Trust is trading at a lower price-to-earnings ratio than Prologis, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
99.8% of First Industrial Realty Trust shares are held by institutional investors. Comparatively, 93.5% of Prologis shares are held by institutional investors. 1.1% of First Industrial Realty Trust shares are held by insiders. Comparatively, 0.5% of Prologis shares are held by 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.
Dividends
First Industrial Realty Trust pays an annual dividend of $2.00 per share and has a dividend yield of 3.7%. Prologis pays an annual dividend of $4.28 per share and has a dividend yield of 3.4%. First Industrial Realty Trust pays out 74.3% of its earnings in the form of a dividend. Prologis pays out 94.5% 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 increased its dividend for 12 consecutive years and Prologis has increased its dividend for 12 consecutive years. First Industrial Realty Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.
Analyst Ratings
This is a summary of current ratings and price targets for First Industrial Realty Trust and Prologis, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| First Industrial Realty Trust | 0 | 8 | 7 | 0 | 2.47 |
| Prologis | 0 | 6 | 18 | 1 | 2.80 |
First Industrial Realty Trust currently has a consensus target price of $64.93, suggesting a potential upside of 20.71%. Prologis has a consensus target price of $154.05, suggesting a potential upside of 21.19%. Given Prologis’ stronger consensus rating and higher probable upside, analysts clearly believe Prologis is more favorable than First Industrial Realty Trust.
Summary
Prologis beats First Industrial Realty Trust on 10 of the 17 factors compared between the two stocks.
About First Industrial Realty Trust
First Industrial Realty Trust, Inc. (NYSE: FR) is a leading U.S.-only owner, operator, developer and acquirer of logistics properties. Through our fully integrated operating and investing platform, we provide high quality facilities and industry-leading customer service to multinational corporations and regional firms that are essential for their supply chains. Our portfolio and new investments are concentrated in 15 target MSAs with an emphasis on supply-constrained, coastally oriented markets. In total, we own and have under development approximately 68.5 million square feet of industrial space as of December 31, 2023.
About Prologis
Prologis, Inc. is the global leader in logistics real estate with a focus on high-barrier, high-growth markets. At March 31, 2024, the company owned or had investments in, on a wholly owned basis or through co-investment ventures, properties and development projects expected to total approximately 1.2 billion square feet (115 million square meters) in 19 countries. Prologis leases modern logistics facilities to a diverse base of approximately 6,700 customers principally across two major categories: business-to-business and retail/online fulfillment.
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