Reviewing Stag Industrial (STAG) & Prologis (AMB)

Stag Industrial (NYSE: STAG) and Prologis (NYSE:AMB) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, institutional ownership, analyst recommendations, dividends, valuation, earnings and profitability.

Profitability

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

Net Margins Return on Equity Return on Assets
Stag Industrial 12.22% 3.97% 1.66%
Prologis 37.59% 7.27% 3.85%

Dividends

Stag Industrial pays an annual dividend of $1.41 per share and has a dividend yield of 5.0%. Prologis does not pay a dividend. Stag Industrial pays out 503.6% 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 6 consecutive years.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Stag Industrial and Prologis, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Stag Industrial 0 1 6 0 2.86
Prologis 0 0 0 0 N/A

Stag Industrial currently has a consensus price target of $27.58, indicating a potential downside of 1.28%.

Insider and Institutional Ownership

81.2% of Stag Industrial shares are owned by institutional investors. 2.0% of Stag Industrial shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Stag Industrial and Prologis’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Stag Industrial $270.80 million 9.52 $185.80 million $0.28 99.79
Prologis N/A N/A N/A N/A N/A

Stag Industrial has higher revenue and earnings than Prologis.

Stag Industrial Company Profile

STAG Industrial, Inc. is a real estate investment trust. The Company is focused on the acquisition, ownership, and operation of single-tenant, industrial properties across the United States. As of December 31, 2016, the Company owned 314 buildings in 37 states with approximately 60.9 million rentable square feet, consisting of 243 warehouse/distribution buildings, 54 light manufacturing buildings, 16 flex/office buildings, and one building in redevelopment. The Company owns all of its properties and conducts its business primarily through STAG Industrial Operating Partnership, L.P. (Operating Partnership). The Company invests in properties historically used for industrial, light manufacturing and commercial purposes. As of December 31, 2016, the Company’s properties were in various locations, such as Montgomery, Alabama; Rogers, Arkansas; Phoenix, Arizona; Sparks, Maryland; Camarillo, California, and Golden and Grand Junction in Colorado.

Prologis Company Profile

Prologis, Inc. is a real estate investment trust (REIT) company. The Company is engaged in logistics real estate business. The Company’s segments include Real Estate Operations and Strategic Capital. The Real estate operations segment consists of rental operations and development. The Company’s strategic capital segment includes asset management services, as well as services performed for unconsolidated co-investment ventures. Its strategic capital segment gives the Company access to third-party capital, both private and public. As of December 31, 2016, the Company owned or had investments in, on an owned basis or through co-investment ventures, properties and development projects across 676 million square feet (63 million square meters) in 20 countries spanning four continents.

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