Critical Comparison: Vornado Realty Trust (NYSE:VNO) versus Prologis (NYSE:PLD)

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

Dividends

Prologis pays an annual dividend of $4.04 per share and has a dividend yield of 3.1%. Vornado Realty Trust pays an annual dividend of $0.74 per share and has a dividend yield of 2.1%. 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. Vornado Realty Trust pays out 17.6% of its earnings in the form of a dividend. 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 Prologis and Vornado Realty Trust”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Prologis	$8.20 billion	14.65	$3.73 billion	$3.43	37.71
Vornado Realty Trust	$1.81 billion	3.65	$70.39 million	$4.20	8.21

Prologis has higher revenue and earnings than Vornado Realty Trust. Vornado 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 Ratings

This is a summary of current ratings for Prologis and Vornado Realty Trust, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Prologis	0	8	10	1	2.63
Vornado Realty Trust	2	9	3	0	2.07

Prologis presently has a consensus price target of $129.18, indicating a potential downside of 0.14%. Vornado Realty Trust has a consensus price target of $38.46, indicating a potential upside of 11.53%. Given Vornado Realty Trust’s higher possible upside, analysts clearly believe Vornado Realty Trust is more favorable than Prologis.

Institutional & Insider Ownership

93.5% of Prologis shares are held by institutional investors. Comparatively, 90.0% of Vornado Realty Trust shares are held by institutional investors. 0.6% of Prologis shares are held by company insiders. Comparatively, 8.4% of Vornado Realty Trust shares are held by company 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.

Profitability

This table compares Prologis and Vornado 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%
Vornado Realty Trust	49.91%	19.48%	5.75%

Volatility and Risk

Prologis has a beta of 1.4, meaning that its share price is 40% more volatile than the S&P 500. Comparatively, Vornado Realty Trust has a beta of 1.49, meaning that its share price is 49% more volatile than the S&P 500.

Summary

Prologis beats Vornado Realty Trust on 10 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 Vornado Realty Trust

Vornado Realty Trust is a fully – integrated equity real estate investment trust.