Terreno Realty Corporation (NYSE: TRNO) and Prologis (NYSE:AMB) are both finance companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, earnings, dividends, risk, analyst recommendations, valuation and institutional ownership.

Insider & Institutional Ownership

97.9% of Terreno Realty Corporation shares are owned by institutional investors. 3.0% of Terreno Realty Corporation shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Terreno Realty Corporation and Prologis’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Terreno Realty Corporation 20.91% 3.13% 1.95%
Prologis 37.59% 7.27% 3.85%

Dividends

Terreno Realty Corporation pays an annual dividend of $0.80 per share and has a dividend yield of 2.2%. Prologis does not pay a dividend. Terreno Realty Corporation pays out 173.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Prologis has increased its dividend for 4 consecutive years.

Earnings and Valuation

This table compares Terreno Realty Corporation and Prologis’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Terreno Realty Corporation $121.16 million 15.70 $65.43 million $0.46 79.52
Prologis N/A N/A N/A N/A N/A

Terreno Realty Corporation has higher revenue and earnings than Prologis.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Terreno Realty Corporation and Prologis, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Terreno Realty Corporation 0 4 4 0 2.50
Prologis 0 0 0 0 N/A

Terreno Realty Corporation currently has a consensus price target of $33.00, suggesting a potential downside of 9.79%.

About Terreno Realty Corporation

Terreno Realty Corporation acquires, owns and operates industrial real estate in coastal markets in the United States, such as Los Angeles, Northern New Jersey/New York City, San Francisco Bay Area, Seattle, Miami and Washington, District of Columbia (D.C.)/Baltimore. The Company invests in a range of industrial real estate, including warehouse/distribution, flex (including light industrial and research and development) and trans-shipment. As of December 31, 2016, the Company owned 166 buildings aggregating approximately 12 million square feet and five land parcels consisting of 22.8 acres. As of December 31, 2016, its properties were leased to 376 customers. The Company focuses on functional buildings in infill locations that may be shared by multiple tenants and that cater to customer demand within the various submarkets in which it operates.

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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