Critical Review: Prologis (NYSE:PLD) and LXP Industrial Trust (NYSE:LXP)

Prologis (NYSE:PLD) and LXP Industrial Trust (NYSE:LXP) are both real estate companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, dividends, valuation, institutional ownership, profitability and risk.

Dividends

Prologis pays an annual dividend of $4.28 per share and has a dividend yield of 3.3%. LXP Industrial Trust pays an annual dividend of $2.80 per share and has a dividend yield of 4.6%. Prologis pays out 95.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. LXP Industrial Trust pays out 280.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Prologis has increased its dividend for 12 consecutive years and LXP Industrial Trust has increased its dividend for 3 consecutive years.

Earnings and Valuation

This table compares Prologis and LXP Industrial 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	$9.19 billion	13.25	$3.33 billion	$4.49	29.07
LXP Industrial Trust	$350.23 million	10.27	$113.16 million	$1.00	61.02

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

Analyst Ratings

This is a summary of current ratings for Prologis and LXP Industrial Trust, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Prologis	0	6	17	0	2.74
LXP Industrial Trust	0	5	3	0	2.38

Prologis currently has a consensus price target of $154.52, indicating a potential upside of 18.40%. LXP Industrial Trust has a consensus price target of $57.40, indicating a potential downside of 5.93%. Given Prologis’ stronger consensus rating and higher probable upside, equities research analysts plainly believe Prologis is more favorable than LXP Industrial Trust.

Risk & Volatility

Prologis has a beta of 1.31, suggesting that its stock price is 31% more volatile than the S&P 500. Comparatively, LXP Industrial Trust has a beta of 1.02, suggesting that its stock price is 2% more volatile than the S&P 500.

Profitability

This table compares Prologis and LXP Industrial Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Prologis	45.79%	7.29%	4.25%
LXP Industrial Trust	18.66%	3.37%	1.83%

Institutional & Insider Ownership

93.5% of Prologis shares are owned by institutional investors. Comparatively, 93.5% of LXP Industrial Trust shares are owned by institutional investors. 0.5% of Prologis shares are owned by company insiders. Comparatively, 2.8% of LXP Industrial Trust shares are owned 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.

Summary

Prologis beats LXP Industrial Trust on 14 of the 17 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 LXP Industrial Trust

LXP Industrial Trust (NYSE: LXP) is a publicly traded real estate investment trust (REIT) focused on single-tenant industrial real estate investments across the United States. LXP seeks to expand its industrial portfolio through acquisitions, build-to-suit transactions, sale-leaseback transactions, development projects and other transactions.