Reviewing InvenTrust Properties (NYSE:IVT) and Terreno Realty (NYSE:TRNO)

InvenTrust Properties (NYSE:IVT) and Terreno Realty (NYSE:TRNO) are both mid-cap finance companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, dividends, profitability, analyst recommendations, valuation, risk and institutional ownership.

Insider & Institutional Ownership

61.7% of InvenTrust Properties shares are owned by institutional investors. 0.7% of InvenTrust Properties shares are owned by insiders. Comparatively, 1.9% of Terreno Realty shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Risk and Volatility

InvenTrust Properties has a beta of 0.8, suggesting that its share price is 20% less volatile than the S&P 500. Comparatively, Terreno Realty has a beta of 1.05, suggesting that its share price is 5% more volatile than the S&P 500.

Profitability

This table compares InvenTrust Properties and Terreno Realty’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
InvenTrust Properties	35.66%	6.10%	3.95%
Terreno Realty	86.44%	10.35%	7.98%

Earnings & Valuation

This table compares InvenTrust Properties and Terreno Realty”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
InvenTrust Properties	$299.17 million	9.43	$111.42 million	$1.41	25.67
Terreno Realty	$476.38 million	14.72	$402.99 million	$4.09	16.12

Terreno Realty has higher revenue and earnings than InvenTrust Properties. Terreno Realty is trading at a lower price-to-earnings ratio than InvenTrust Properties, indicating that it is currently the more affordable of the two stocks.

Dividends

InvenTrust Properties pays an annual dividend of $1.00 per share and has a dividend yield of 2.8%. Terreno Realty pays an annual dividend of $2.08 per share and has a dividend yield of 3.2%. InvenTrust Properties pays out 70.9% of its earnings in the form of a dividend. Terreno Realty pays out 50.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. InvenTrust Properties has increased its dividend for 4 consecutive years and Terreno Realty has increased its dividend for 5 consecutive years. Terreno Realty is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Recommendations

This is a summary of recent recommendations and price targets for InvenTrust Properties and Terreno Realty, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
InvenTrust Properties	0	1	4	2	3.14
Terreno Realty	2	2	8	1	2.62

InvenTrust Properties currently has a consensus price target of $34.57, indicating a potential downside of 4.50%. Terreno Realty has a consensus price target of $69.21, indicating a potential upside of 4.97%. Given Terreno Realty’s higher possible upside, analysts clearly believe Terreno Realty is more favorable than InvenTrust Properties.

Summary

Terreno Realty beats InvenTrust Properties on 14 of the 18 factors compared between the two stocks.

About InvenTrust Properties

InvenTrust Properties Corp. (the “Company,” “IVT,” or “InvenTrust”) is a premier Sun Belt, multi-tenant essential retail REIT that owns, leases, redevelops, acquires and manages grocery-anchored neighborhood and community centers as well as high-quality power centers that often have a grocery component. Management pursues the Company’s business strategy by acquiring retail properties in Sun Belt markets, opportunistically disposing of retail properties, maintaining a flexible capital structure, and enhancing environmental, social and governance (“ESG”) practices and standards. A trusted, local operator bringing real estate expertise to its tenant relationships, IVT has built a strong reputation with market participants across its portfolio. IVT is committed to leadership in ESG practices and has been a Global Real Estate Sustainability Benchmark (“GRESB”) member since 2013.

About Terreno Realty

Terreno Realty Corporation (Terreno, and together with its subsidiaries, the Company) acquires, owns and operates industrial real estate in six major coastal U.S. markets: Los Angeles, Northern New Jersey/New York City, San Francisco Bay Area, Seattle, Miami, and Washington, D.C. All square feet, acres, occupancy and number of properties disclosed in these notes to the consolidated financial statements are unaudited. As of December 31, 2023, the Company owned 259 buildings aggregating approximately 16.0 million square feet, 45 improved land parcels consisting of approximately 152.4 acres, seven properties under development or redevelopment and approximately 62.7 acres of land entitled for future development. The Company is an internally managed Maryland corporation and elected to be taxed as a real estate investment trust (REIT) under Sections 856 through 860 of the Internal Revenue Code of 1986, as amended (the Code), commencing with its taxable year ended December 31, 2010.