Comparing First Industrial Realty Trust (NYSE:FR) & Prologis (NYSE:PLD)

First Industrial Realty Trust (NYSE:FR) and Prologis (NYSE:PLD) are both real estate companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, profitability, valuation, risk, earnings, institutional ownership and dividends.

Risk & Volatility

First Industrial Realty Trust has a beta of 1.01, meaning that its share price is 1% more volatile than the S&P 500. Comparatively, Prologis has a beta of 1.27, meaning that its share price is 27% more volatile than the S&P 500.

Dividends

First Industrial Realty Trust pays an annual dividend of $2.00 per share and has a dividend yield of 3.6%. Prologis pays an annual dividend of $4.28 per share and has a dividend yield of 3.3%. 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 raised its dividend for 12 consecutive years and Prologis has raised 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 breakdown of recent ratings and price targets for First Industrial Realty Trust and Prologis, as reported by MarketBeat.com.

	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 presently has a consensus price target of $64.93, indicating a potential upside of 18.26%. Prologis has a consensus price target of $154.05, indicating a potential upside of 19.33%. Given Prologis’ stronger consensus rating and higher probable upside, analysts plainly believe Prologis is more favorable than First Industrial Realty Trust.

Valuation & Earnings

This table compares First Industrial Realty Trust and Prologis”s gross 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	10.01	$247.44 million	$2.69	20.41
Prologis	$8.79 billion	13.96	$3.33 billion	$4.53	28.50

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 & Institutional Ownership

99.8% of First Industrial Realty Trust shares are owned by institutional investors. Comparatively, 93.5% of Prologis shares are owned by institutional investors. 1.1% of First Industrial Realty Trust shares are owned by insiders. Comparatively, 0.5% of Prologis shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

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%

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 is a real estate investment trust focused on owning, operating, acquiring and developing industrial properties in the United States. Its portfolio includes warehouses, distribution facilities and other buildings used for manufacturing and logistics. The company serves businesses that need space to store, move or produce goods, with properties in major U.S. industrial and distribution markets. First Industrial was established in 1994 and is headquartered in Chicago. Peter E. Baccile serves as the company’s president and chief executive officer.

About Prologis

Prologis is a global logistics real estate company that owns, develops and operates warehouses, distribution centers and other facilities used to store and move goods. Its properties support customers in industries including retail, manufacturing, transportation and e-commerce. The company also provides property management and development services and invests in logistics real estate through investment management platforms. Its facilities are located in major markets across North America, Europe, Asia and Latin America.