Americold Realty Trust (NYSE:COLD) versus Terreno Realty (NYSE:TRNO) Head-To-Head Review

Americold Realty Trust (NYSE:COLD) and Terreno Realty (NYSE:TRNO) are both mid-cap real estate companies, but which is the better business? We will compare the two companies based on the strength of their risk, institutional ownership, valuation, dividends, analyst recommendations, profitability and earnings.

Valuation & Earnings

This table compares Americold Realty Trust and Terreno Realty”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Americold Realty Trust	$2.60 billion	1.53	-$114.55 million	($1.59)	-8.79
Terreno Realty	$476.38 million	14.78	$402.99 million	$3.73	17.32

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

Dividends

Americold Realty Trust pays an annual dividend of $0.92 per share and has a dividend yield of 6.6%. Terreno Realty pays an annual dividend of $2.08 per share and has a dividend yield of 3.2%. Americold Realty Trust pays out -57.9% of its earnings in the form of a dividend. Terreno Realty pays out 55.8% 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. Americold Realty Trust has increased its dividend for 1 consecutive years and Terreno Realty has increased its dividend for 5 consecutive years. Americold Realty Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Americold Realty Trust and Terreno Realty, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Americold Realty Trust	2	10	4	0	2.12
Terreno Realty	2	4	7	1	2.50

Americold Realty Trust currently has a consensus price target of $15.90, suggesting a potential upside of 13.76%. Terreno Realty has a consensus price target of $73.71, suggesting a potential upside of 14.09%. Given Terreno Realty’s stronger consensus rating and higher probable upside, analysts clearly believe Terreno Realty is more favorable than Americold Realty Trust.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Americold Realty Trust	-17.44%	-16.14%	-5.68%
Terreno Realty	77.22%	9.21%	7.07%

Insider and Institutional Ownership

98.1% of Americold Realty Trust shares are owned by institutional investors. 0.4% of Americold Realty Trust shares are owned by insiders. Comparatively, 1.9% of Terreno Realty shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Volatility & Risk

Americold Realty Trust has a beta of 0.98, meaning that its share price is 2% less volatile than the S&P 500. Comparatively, Terreno Realty has a beta of 1.02, meaning that its share price is 2% more volatile than the S&P 500.

Summary

Terreno Realty beats Americold Realty Trust on 14 of the 18 factors compared between the two stocks.

About Americold Realty Trust

Americold Realty Trust, Inc. is a real estate investment trust, which focuses on the ownership, operation, development, and acquisition of temperature-controlled warehouses. It operates through the following segments: Warehouse, Third-Party Managed, Transportation, and Other. The Warehouse segment collects rent and storage fees from customers to store frozen and perishable food and other products within the firm’s real estate portfolio. The Third-Party Managed segment manages warehouses on behalf of third parties and provides warehouse management services to food retailers and manufacturers in customer-owned facilities. The Transportation segment is involved in brokering and managing transportation of frozen and perishable food and other products. The Other segment includes ownership in a limestone quarry in Carthage, Missouri. The company was founded in 1931 and is headquartered in Atlanta, GA.

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.