Head to Head Analysis: Prologis (NYSE:PLD) & LXP Industrial Trust (NYSE:LXP)

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

Profitability

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

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

Earnings and Valuation

This table compares LXP Industrial Trust and Prologis”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
LXP Industrial Trust	$350.23 million	10.26	$113.16 million	$1.00	60.96
Prologis	$8.79 billion	13.52	$3.33 billion	$4.49	28.36

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.

Insider & Institutional Ownership

93.5% of LXP Industrial Trust shares are owned by institutional investors. Comparatively, 93.5% of Prologis shares are owned by institutional investors. 2.8% of LXP Industrial Trust shares are owned by company insiders. Comparatively, 0.5% of Prologis shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Dividends

LXP Industrial Trust pays an annual dividend of $2.80 per share and has a dividend yield of 4.6%. Prologis pays an annual dividend of $4.28 per share and has a dividend yield of 3.4%. 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 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 has raised its dividend for 3 consecutive years and Prologis has raised its dividend for 12 consecutive years.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
LXP Industrial Trust	0	6	2	0	2.25
Prologis	0	7	16	0	2.70

LXP Industrial Trust currently has a consensus price target of $57.40, suggesting a potential downside of 5.84%. Prologis has a consensus price target of $154.52, suggesting a potential upside of 21.35%. Given Prologis’ stronger consensus rating and higher probable upside, analysts plainly believe Prologis is more favorable than LXP Industrial Trust.

Volatility & Risk

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

Summary

Prologis beats LXP Industrial Trust on 13 of the 17 factors compared between the two stocks.

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.

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.