Head to Head Review: Prologis (NYSE:PLD) versus Granite Point Mortgage Trust (NYSE:GPMT)

Granite Point Mortgage Trust (NYSE:GPMT) and Prologis (NYSE:PLD) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, dividends, profitability, analyst recommendations, valuation, earnings and institutional ownership.

Analyst Recommendations

This is a breakdown of current recommendations for Granite Point Mortgage Trust and Prologis, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Granite Point Mortgage Trust	1	1	2	0	2.25
Prologis	0	6	10	1	2.71

Granite Point Mortgage Trust presently has a consensus price target of $5.08, indicating a potential upside of 95.51%. Prologis has a consensus price target of $133.12, indicating a potential upside of 2.21%. Given Granite Point Mortgage Trust’s higher possible upside, research analysts clearly believe Granite Point Mortgage Trust is more favorable than Prologis.

Valuation & Earnings

This table compares Granite Point Mortgage Trust and Prologis’ top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Granite Point Mortgage Trust	$263.73 million	0.50	-$63.20 million	($2.31)	-1.13
Prologis	$7.77 billion	15.52	$3.06 billion	$3.42	38.08

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

Profitability

This table compares Granite Point Mortgage Trust and Prologis’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Granite Point Mortgage Trust	-74.38%	2.45%	0.70%
Prologis	36.37%	4.88%	3.04%

Volatility and Risk

Granite Point Mortgage Trust has a beta of 1.78, indicating that its stock price is 78% more volatile than the S&P 500. Comparatively, Prologis has a beta of 1.07, indicating that its stock price is 7% more volatile than the S&P 500.

Insider & Institutional Ownership

51.6% of Granite Point Mortgage Trust shares are owned by institutional investors. Comparatively, 93.5% of Prologis shares are owned by institutional investors. 2.3% of Granite Point Mortgage Trust shares are owned by insiders. Comparatively, 0.5% of Prologis shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Dividends

Granite Point Mortgage Trust pays an annual dividend of $0.20 per share and has a dividend yield of 7.7%. Prologis pays an annual dividend of $3.84 per share and has a dividend yield of 2.9%. Granite Point Mortgage Trust pays out -8.7% of its earnings in the form of a dividend. Prologis pays out 112.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Prologis has increased its dividend for 11 consecutive years. Granite Point Mortgage Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Prologis beats Granite Point Mortgage Trust on 13 of the 18 factors compared between the two stocks.

About Granite Point Mortgage Trust

Granite Point Mortgage Trust Inc., a real estate investment trust, originates, invests in, and manages senior floating-rate commercial mortgage loans, and other debt and debt-like commercial real estate investments in the United States. The company provides intermediate-term bridge or transitional financing for various purposes, including acquisitions, recapitalizations, and refinancing, as well as a range of business plans, including lease-up, renovation, repositioning, and repurposing of the commercial property. The company qualifies as a real estate investment trust for federal income tax purposes. It generally would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. The company was founded in 2015 and is headquartered in New York, New York.

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.