Prologis vs Realty Income Which Is More Lucrative?

When comparing Prologis and Realty Income stocks, investors must consider various factors such as their business models, financial performance, and growth potential. Prologis is a leading global provider of logistics real estate, while Realty Income is a real estate investment trust specializing in retail properties. Prologis has a strong track record of consistent growth and occupancy rates, while Realty Income offers stable dividends with its portfolio of high-quality tenants. Both stocks present unique opportunities for investors seeking exposure to the real estate sector.

Prologis or Realty Income?

When comparing Prologis and Realty Income, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Prologis and Realty Income.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Prologis has a dividend yield of 3.36%, while Realty Income has a dividend yield of 5.67%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Prologis reports a 5-year dividend growth of 12.63% year and a payout ratio of 113.05%. On the other hand, Realty Income reports a 5-year dividend growth of 3.00% year and a payout ratio of 291.48%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Prologis P/E ratio at 33.54 and Realty Income's P/E ratio at 54.58. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Prologis P/B ratio is 1.95 while Realty Income's P/B ratio is 1.25.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Prologis has seen a 5-year revenue growth of 0.71%, while Realty Income's is 0.28%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Prologis's ROE at 5.80% and Realty Income's ROE at 2.36%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $111.30 for Prologis and $55.06 for Realty Income. Over the past year, Prologis's prices ranged from $101.11 to $137.52, with a yearly change of 36.01%. Realty Income's prices fluctuated between $50.65 and $64.88, with a yearly change of 28.09%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.