Granite Real Estate Investment Trust (NYSE: GRP) and Prologis (NYSE:PLD) are both financials companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, earnings, valuation, analyst recommendations, dividends, risk and institutional ownership.
Valuation and Earnings
This table compares Granite Real Estate Investment Trust and Prologis’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Granite Real Estate Investment Trust||N/A||N/A||N/A||$1.29||30.16|
|Prologis||$2.53 billion||13.90||$1.21 billion||$3.33||19.88|
This is a breakdown of current ratings and target prices for Granite Real Estate Investment Trust and Prologis, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Granite Real Estate Investment Trust||0||3||0||0||2.00|
Granite Real Estate Investment Trust presently has a consensus target price of $45.50, indicating a potential upside of 16.94%. Prologis has a consensus target price of $65.92, indicating a potential downside of 0.41%. Given Granite Real Estate Investment Trust’s higher possible upside, equities analysts clearly believe Granite Real Estate Investment Trust is more favorable than Prologis.
Volatility and Risk
Granite Real Estate Investment Trust has a beta of 1.99, indicating that its share price is 99% more volatile than the S&P 500. Comparatively, Prologis has a beta of 0.91, indicating that its share price is 9% less volatile than the S&P 500.
Institutional and Insider Ownership
95.6% of Prologis shares are held by institutional investors. 1.3% of Prologis shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Prologis pays an annual dividend of $1.76 per share and has a dividend yield of 2.7%. Granite Real Estate Investment Trust does not pay a dividend. Prologis pays out 52.9% of its earnings in the form of a dividend. Granite Real Estate Investment Trust has increased its dividend for 3 consecutive years.
This table compares Granite Real Estate Investment Trust and Prologis’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Granite Real Estate Investment Trust||N/A||N/A||N/A|
Prologis beats Granite Real Estate Investment Trust on 10 of the 14 factors compared between the two stocks.
Granite Real Estate Investment Trust Company Profile
Granite Real Estate Investment Trust is a real estate investment trust (REIT). It is engaged principally in the acquisition, development, construction, leasing, management and ownership of an industrial global rental portfolio of properties in North America and Europe leased primarily to Magna International Inc. and its automotive operating units. It is a service REIT with an international portfolio consisting of over 100 properties. It provides a range of services that includes sourcing and real estate acquisition, site development, assisting with government approvals and re-zoning to specific uses, build-to-suit construction, property renovation, project management and long-term leasing. In November 2013, Granite Real Estate Investment Trust completed its acquisition of a 2.5 million square foot portfolio of seven properties located in Germany and the Netherlands from funds managed by AEW 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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