Reviewing Postal Realty Trust (NYSE:PSTL) and Prologis (NYSE:PLD)

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

Risk and Volatility

Postal Realty Trust has a beta of 0.81, meaning that its share price is 19% less volatile than the S&P 500. Comparatively, Prologis has a beta of 1.25, meaning that its share price is 25% more volatile than the S&P 500.

Dividends

Postal Realty Trust pays an annual dividend of $0.97 per share and has a dividend yield of 7.7%. Prologis pays an annual dividend of $4.04 per share and has a dividend yield of 3.8%. Postal Realty Trust pays out 346.4% 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 pays out 101.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Postal Realty Trust has raised its dividend for 3 consecutive years and Prologis has raised its dividend for 12 consecutive years.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Postal Realty Trust	4.55%	1.06%	0.55%
Prologis	45.50%	6.44%	3.95%

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Postal Realty Trust	$81.24 million	3.66	$3.71 million	$0.28	45.07
Prologis	$8.38 billion	11.84	$3.64 billion	$4.00	26.74

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

Insider and Institutional Ownership

57.9% of Postal Realty Trust shares are owned by institutional investors. Comparatively, 93.5% of Prologis shares are owned by institutional investors. 13.7% of Postal Realty Trust shares are owned by insiders. Comparatively, 0.6% of Prologis 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.

Analyst Ratings

This is a breakdown of recent ratings for Postal Realty Trust and Prologis, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Postal Realty Trust	0	0	1	0	3.00
Prologis	1	7	10	2	2.65

Postal Realty Trust presently has a consensus price target of $16.50, suggesting a potential upside of 30.74%. Prologis has a consensus price target of $121.68, suggesting a potential upside of 13.76%. Given Postal Realty Trust’s stronger consensus rating and higher possible upside, research analysts clearly believe Postal Realty Trust is more favorable than Prologis.

Summary

Prologis beats Postal Realty Trust on 13 of the 18 factors compared between the two stocks.

About Postal Realty Trust

Postal Realty Trust, Inc. (NYSE: PSTL) is an internally managed real estate investment trust that owns properties primarily leased to the United States Postal Service ("USPS"). PSTL is focused on acquiring the network of USPS properties, which provide a critical element of the nation's logistics infrastructure that facilitates cost effective and efficient last-mile delivery solutions. As of December 31, 2023, PSTL owned 1,509 properties (including two properties accounted for as financing leases) located in 49 states and one territory comprising approximately 5.9 million net leasable interior square feet. Subsequent to quarter-end and through February 23, 2024, PSTL closed on eight additional properties comprising approximately 33,000 net leasable interior square feet.

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.