Realty Income vs Prologis Which Is More Reliable?

Realty Income and Prologis are both established players in the real estate investment trust (REIT) sector, specializing in different types of properties. Realty Income is known for its portfolio of retail properties, while Prologis focuses on industrial real estate. Both companies have a track record of strong performance and consistent dividend payments, making them popular choices among investors seeking stable income. However, their overall strategies and market positioning vary, offering investors the opportunity to diversify their real estate holdings.

Realty Income or Prologis?

When comparing Realty Income and Prologis, 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 Realty Income and Prologis.

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. Realty Income has a dividend yield of 5.41%, while Prologis has a dividend yield of 4.13%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Realty Income reports a 5-year dividend growth of 3.00% year and a payout ratio of 291.48%. On the other hand, Prologis reports a 5-year dividend growth of 12.63% year and a payout ratio of 113.05%.

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 Realty Income P/E ratio at 57.07 and Prologis's P/E ratio at 34.28. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Realty Income P/B ratio is 1.31 while Prologis's P/B ratio is 1.99.

Growth Investors:

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

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $57.49 for Realty Income and $113.80 for Prologis. Over the past year, Realty Income's prices ranged from $49.52 to $64.88, with a yearly change of 31.02%. Prologis's prices fluctuated between $101.11 and $137.52, with a yearly change of 36.01%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.