Granite Real Estate Inc. Staple (NYSE:GRP.U) vs. Prologis (NYSE:PLD) Financial Survey

Prologis (NYSE:PLD) and Granite Real Estate Inc. Staple (NYSE:GRP.U) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, earnings, dividends, analyst recommendations, risk, valuation and institutional ownership.

Insider and Institutional Ownership

93.5% of Prologis shares are owned by institutional investors. Comparatively, 57.1% of Granite Real Estate Inc. Staple shares are owned by institutional investors. 0.5% of Prologis shares are owned by insiders. Comparatively, 0.3% of Granite Real Estate Inc. Staple shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Prologis and Granite Real Estate Inc. Staple”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Prologis	$7.89 billion	12.40	$3.06 billion	$3.31	31.91
Granite Real Estate Inc. Staple	$550.94 million	5.55	$101.24 million	$3.58	13.61

Prologis has higher revenue and earnings than Granite Real Estate Inc. Staple. Granite Real Estate Inc. Staple is trading at a lower price-to-earnings ratio than Prologis, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Prologis and Granite Real Estate Inc. Staple, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Prologis	1	6	9	0	2.50
Granite Real Estate Inc. Staple	0	0	0	0	0.00

Prologis currently has a consensus price target of $128.88, suggesting a potential upside of 22.01%. Given Prologis’ stronger consensus rating and higher probable upside, equities research analysts plainly believe Prologis is more favorable than Granite Real Estate Inc. Staple.

Profitability

This table compares Prologis and Granite Real Estate Inc. Staple’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Prologis	39.08%	5.34%	3.28%
Granite Real Estate Inc. Staple	55.97%	5.71%	3.34%

Dividends

Prologis pays an annual dividend of $3.84 per share and has a dividend yield of 3.6%. Granite Real Estate Inc. Staple pays an annual dividend of $1.77 per share and has a dividend yield of 3.6%. Prologis pays out 116.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Granite Real Estate Inc. Staple pays out 49.4% of its earnings in the form of a dividend. Prologis has raised its dividend for 11 consecutive years. Prologis is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Prologis beats Granite Real Estate Inc. Staple on 11 of the 16 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 Granite Real Estate Inc. Staple

Granite Real Estate Investment Trust is engaged in the ownership and management of predominantly industrial properties in Canada, the United States, Mexico and Europe. The Company owns and manages rental income properties. Its services include sourcing and real estate acquisition, site development, assisting with government approvals and re-zoning to specific uses, build-to-suit construction, property renovation, project management and long-term leasing. Granite Real Estate Investment Trust, formerly known as Granite Real Estate Inc., is based in Toronto, Canada.