Analyzing Rexford Industrial Realty (NYSE:REXR) and Brookfield Infrastructure Partners (NYSE:BIP)

Brookfield Infrastructure Partners (NYSE:BIP) and Rexford Industrial Realty (NYSE:REXR) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, risk, earnings, dividends, valuation, analyst recommendations and institutional ownership.

Dividends

Brookfield Infrastructure Partners pays an annual dividend of $1.72 per share and has a dividend yield of 4.9%. Rexford Industrial Realty pays an annual dividend of $1.72 per share and has a dividend yield of 4.3%. Brookfield Infrastructure Partners pays out 256.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Rexford Industrial Realty pays out 121.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Brookfield Infrastructure Partners has raised its dividend for 18 consecutive years and Rexford Industrial Realty has raised its dividend for 4 consecutive years. Brookfield Infrastructure Partners is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Risk & Volatility

Brookfield Infrastructure Partners has a beta of 1.09, meaning that its share price is 9% more volatile than the S&P 500. Comparatively, Rexford Industrial Realty has a beta of 1.22, meaning that its share price is 22% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations and price targets for Brookfield Infrastructure Partners and Rexford Industrial Realty, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Brookfield Infrastructure Partners	0	3	4	2	2.89
Rexford Industrial Realty	1	10	3	0	2.14

Brookfield Infrastructure Partners presently has a consensus target price of $41.25, suggesting a potential upside of 17.99%. Rexford Industrial Realty has a consensus target price of $43.00, suggesting a potential upside of 6.57%. Given Brookfield Infrastructure Partners’ stronger consensus rating and higher possible upside, research analysts clearly believe Brookfield Infrastructure Partners is more favorable than Rexford Industrial Realty.

Earnings and Valuation

This table compares Brookfield Infrastructure Partners and Rexford Industrial Realty”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Brookfield Infrastructure Partners	$21.04 billion	0.77	$351.00 million	$0.67	52.18
Rexford Industrial Realty	$936.41 million	10.03	$273.80 million	$1.42	28.41

Brookfield Infrastructure Partners has higher revenue and earnings than Rexford Industrial Realty. Rexford Industrial Realty is trading at a lower price-to-earnings ratio than Brookfield Infrastructure Partners, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

57.9% of Brookfield Infrastructure Partners shares are held by institutional investors. Comparatively, 99.5% of Rexford Industrial Realty shares are held by institutional investors. 1.2% of Rexford Industrial Realty shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Brookfield Infrastructure Partners and Rexford Industrial Realty’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Brookfield Infrastructure Partners	3.70%	2.74%	0.75%
Rexford Industrial Realty	33.88%	3.81%	2.62%

About Brookfield Infrastructure Partners

Brookfield Infrastructure Partners L.P. owns and operates utilities, transport, midstream, and data businesses in North and South America, Europe, and the Asia Pacific. The company's Utilities segment operates approximately 2,900 km of electricity transmission lines; 4,200 km of natural gas pipelines; 8.1 million electricity and natural gas connections; and 0.6 million long-term contracted sub-metering services. This segment also offers heating, cooling, and energy solutions; gas distribution; water heaters; and heating, ventilation, and air conditioner rental, as well as other home services. Its Transport segment offers transportation, storage, and handling services for merchandise goods, commodities, and passengers through a network of approximately 22,000 km of track; 5,500 km of track network; 9,800 km of rail; and 3,300 km of motorways. The company's Midstream segment offers natural gas transmission, gathering and processing, and storage services through approximately 15,000 km of natural gas transmission pipelines; 570 billion cubic feet of natural gas storage; 17 natural gas processing plants; and 10,600 km of gas gathering pipelines, as well as 525,000 tonnes polypropylene production capacity. Its Data segment operates approximately 228,000 operational telecom towers; approximately 54,000 kilometers of fiber optic cables; approximately 1 million fiber-to-the-premise connections; two semiconductor manufacturing facilities; and 70 distributed antenna systems, as well as 135 data centers and 750 megawatts of critical load capacity and an additional approximate 670 megawatts of contracted capacity. The company was incorporated in 2007 and is based in Hamilton, Bermuda. Brookfield Infrastructure Partners L.P. operates as a subsidiary of Brookfield Corporation.

About Rexford Industrial Realty

Rexford Industrial Realty, Inc. is a self-administered and self-managed real estate investment trust, which engages in owning and operating industrial properties in infill markets. The company was founded by Richard S. Ziman on January 18, 2013 and is headquartered in Los Angeles, CA.