Financial Review: Peakstone Realty Trust (NYSE:PKST) & Prologis (NYSE:PLD)

Prologis (NYSE:PLD) and Peakstone Realty Trust (NYSE:PKST) are both finance companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, profitability, valuation, institutional ownership, earnings, dividends and risk.

Earnings and Valuation

This table compares Prologis and Peakstone Realty Trust”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Prologis	$8.74 billion	13.28	$3.73 billion	$3.43	36.42
Peakstone Realty Trust	$228.07 million	2.42	-$10.43 million	($8.13)	-1.85

Prologis has higher revenue and earnings than Peakstone Realty Trust. Peakstone 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.

Risk & Volatility

Prologis has a beta of 1.29, suggesting that its share price is 29% more volatile than the S&P 500. Comparatively, Peakstone Realty Trust has a beta of 1.76, suggesting that its share price is 76% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and price targets for Prologis and Peakstone Realty Trust, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Prologis	0	7	10	2	2.74
Peakstone Realty Trust	1	1	2	0	2.25

Prologis currently has a consensus price target of $125.39, indicating a potential upside of 0.37%. Peakstone Realty Trust has a consensus price target of $17.50, indicating a potential upside of 16.49%. Given Peakstone Realty Trust’s higher possible upside, analysts clearly believe Peakstone Realty Trust is more favorable than Prologis.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Prologis	36.71%	5.55%	3.31%
Peakstone Realty Trust	-153.27%	-32.69%	-13.09%

Institutional & Insider Ownership

93.5% of Prologis shares are held by institutional investors. Comparatively, 39.0% of Peakstone Realty Trust shares are held by institutional investors. 0.6% of Prologis shares are held by company insiders. Comparatively, 0.8% of Peakstone Realty Trust shares are held by company 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.

Dividends

Prologis pays an annual dividend of $4.04 per share and has a dividend yield of 3.2%. Peakstone Realty Trust pays an annual dividend of $0.40 per share and has a dividend yield of 2.7%. Prologis pays out 117.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Peakstone Realty Trust pays out -4.9% of its earnings in the form of a dividend. Prologis has raised its dividend for 12 consecutive years and Peakstone Realty Trust has raised its dividend for 1 consecutive years. Prologis is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Prologis beats Peakstone Realty Trust on 14 of the 18 factors compared between the two stocks.

About Prologis

Prologis, Inc. is the global leader in logistics real estate with a focus on high-barrier, high-growth markets. At March 31, 2024, the company owned or had investments in, on a wholly owned basis or through co-investment ventures, properties and development projects expected to total approximately 1.2 billion square feet (115 million square meters) in 19 countries. Prologis leases modern logistics facilities to a diverse base of approximately 6,700 customers principally across two major categories: business-to-business and retail/online fulfillment.

About Peakstone Realty Trust

Peakstone Realty Trust (NYSE: PKST) is an internally managed, real estate investment trust (REIT) that owns and operates a high-quality, newer-vintage portfolio of predominantly single-tenant industrial and office properties. These assets are generally leased to creditworthy tenants under long-term net lease agreements with contractual rent escalations. As of March 31, 2023, Peakstone's wholly-owned portfolio consists of 19 million square feet across 24 states in primarily high-growth, strategic coastal and sunbelt markets.