Financial Contrast: SL Green Realty (NYSE:SLG) and Prologis (NYSE:PLD)

SL Green Realty (NYSE:SLG) and Prologis (NYSE:PLD) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, earnings, dividends, profitability, risk, valuation and analyst recommendations.

Dividends

SL Green Realty pays an annual dividend of $3.09 per share and has a dividend yield of 6.0%. Prologis pays an annual dividend of $4.04 per share and has a dividend yield of 3.2%. SL Green Realty pays out 30,900.0% 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 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. SL Green Realty has raised its dividend for 1 consecutive years and Prologis has raised its dividend for 12 consecutive years.

Institutional & Insider Ownership

90.0% of SL Green Realty shares are owned by institutional investors. Comparatively, 93.5% of Prologis shares are owned by institutional investors. 5.0% of SL Green Realty shares are owned by insiders. Comparatively, 0.6% of Prologis shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of current recommendations for SL Green Realty and Prologis, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SL Green Realty	1	10	5	0	2.25
Prologis	0	7	10	2	2.74

SL Green Realty currently has a consensus target price of $64.67, suggesting a potential upside of 24.65%. Prologis has a consensus target price of $124.44, suggesting a potential downside of 1.70%. Given SL Green Realty’s higher possible upside, research analysts plainly believe SL Green Realty is more favorable than Prologis.

Profitability

This table compares SL Green Realty and Prologis’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SL Green Realty	1.75%	-0.22%	-0.08%
Prologis	36.71%	5.55%	3.31%

Volatility & Risk

SL Green Realty has a beta of 1.77, indicating that its share price is 77% more volatile than the S&P 500. Comparatively, Prologis has a beta of 1.28, indicating that its share price is 28% more volatile than the S&P 500.

Valuation & Earnings

This table compares SL Green Realty and Prologis”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SL Green Realty	$886.27 million	4.17	$30.65 million	$0.01	5,187.80
Prologis	$8.20 billion	14.33	$3.73 billion	$3.43	36.91

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

Summary

Prologis beats SL Green Realty on 13 of the 18 factors compared between the two stocks.

About SL Green Realty

3SL Green Realty Corp., Manhattan’s largest office landlord, is a fully integrated real estate investment trust, or REIT, that is focused primarily on acquiring, managing and maximizing value of Manhattan commercial properties. As of June 30, 2022, SL Green held interests in 64 buildings totaling 34.4 million square feet. This included ownership interests in 26.3 million square feet of Manhattan buildings and 7.2 million square feet securing debt and preferred equity investments.

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.