Prologis (PLD) vs. Its Competitors Critical Review

Prologis (NYSE: PLD) is one of 11 public companies in the “Industrial REITs” industry, but how does it compare to its rivals? We will compare Prologis to similar companies based on the strength of its analyst recommendations, earnings, institutional ownership, valuation, risk, dividends and profitability.

Volatility & Risk

Prologis has a beta of 0.92, suggesting that its share price is 8% less volatile than the S&P 500. Comparatively, Prologis’ rivals have a beta of 1.01, suggesting that their average share price is 1% more volatile than the S&P 500.

Profitability

This table compares Prologis and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Prologis 68.50% 9.93% 5.99%
Prologis Competitors 46.98% 6.18% 3.15%

Dividends

Prologis pays an annual dividend of $1.76 per share and has a dividend yield of 2.7%. Prologis pays out 52.9% of its earnings in the form of a dividend. As a group, “Industrial REITs” companies pay a dividend yield of 2.9% and pay out 106.9% of their earnings in the form of a dividend. Prologis has increased its dividend for 3 consecutive years.

Analyst Ratings

This is a summary of recent ratings for Prologis and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Prologis 0 3 10 0 2.77
Prologis Competitors 57 502 495 5 2.42

Prologis currently has a consensus price target of $65.08, suggesting a potential downside of 1.84%. As a group, “Industrial REITs” companies have a potential downside of 1.08%. Given Prologis’ rivals higher probable upside, analysts plainly believe Prologis has less favorable growth aspects than its rivals.

Insider and Institutional Ownership

95.5% of Prologis shares are held by institutional investors. Comparatively, 91.8% of shares of all “Industrial REITs” companies are held by institutional investors. 1.3% of Prologis shares are held by company insiders. Comparatively, 1.7% of shares of all “Industrial REITs” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Prologis and its rivals top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Prologis $2.53 billion $1.21 billion 19.91
Prologis Competitors $606.71 million $215.55 million 182.52

Prologis has higher revenue and earnings than its rivals. Prologis is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Summary

Prologis beats its rivals on 9 of the 15 factors compared.

About Prologis

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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