Peakstone Realty Trust (NYSE:PKST) vs. Prologis (NYSE:PLD) Critical Comparison

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Peakstone Realty Trust	-145.77%	-31.54%	-13.18%
Prologis	36.71%	5.55%	3.31%

Dividends

Peakstone Realty Trust pays an annual dividend of $0.40 per share and has a dividend yield of 3.1%. Prologis pays an annual dividend of $4.04 per share and has a dividend yield of 3.3%. Peakstone Realty Trust pays out -4.5% of its earnings in the form of a dividend. 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 has increased its dividend for 1 consecutive years and Prologis has increased its dividend for 12 consecutive years. Prologis is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Valuation & Earnings

This table compares Peakstone 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
Peakstone Realty Trust	$228.07 million	2.10	-$10.43 million	($8.89)	-1.46
Prologis	$8.74 billion	13.18	$3.73 billion	$3.43	36.15

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.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Peakstone Realty Trust	2	0	2	0	2.00
Prologis	0	7	10	2	2.74

Peakstone Realty Trust currently has a consensus target price of $17.50, indicating a potential upside of 34.69%. Prologis has a consensus target price of $124.56, indicating a potential upside of 0.46%. Given Peakstone Realty Trust’s higher probable upside, analysts plainly believe Peakstone Realty Trust is more favorable than Prologis.

Volatility & Risk

Peakstone Realty Trust has a beta of 1.76, suggesting that its share price is 76% more volatile than the S&P 500. Comparatively, Prologis has a beta of 1.28, suggesting that its share price is 28% more volatile than the S&P 500.

Institutional and Insider Ownership

39.0% of Peakstone Realty Trust shares are held by institutional investors. Comparatively, 93.5% of Prologis shares are held by institutional investors. 0.8% of Peakstone Realty Trust shares are held by insiders. Comparatively, 0.6% of Prologis shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

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

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.

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.