Prologis (NYSE:PLD) & PennyMac Mortgage Investment Trust (NYSE:PMT) Head to Head Comparison

PennyMac Mortgage Investment Trust (NYSE:PMT) and Prologis (NYSE:PLD) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, dividends, profitability, risk, earnings, analyst recommendations and institutional ownership.

Risk & Volatility

PennyMac Mortgage Investment Trust has a beta of 1.51, suggesting that its stock price is 51% more volatile than the S&P 500. Comparatively, Prologis has a beta of 1.08, suggesting that its stock price is 8% more volatile than the S&P 500.

Insider & Institutional Ownership

67.4% of PennyMac Mortgage Investment Trust shares are owned by institutional investors. Comparatively, 93.5% of Prologis shares are owned by institutional investors. 0.9% of PennyMac Mortgage Investment Trust shares are owned by insiders. Comparatively, 0.5% of Prologis shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Dividends

PennyMac Mortgage Investment Trust pays an annual dividend of $1.60 per share and has a dividend yield of 11.9%. Prologis pays an annual dividend of $3.84 per share and has a dividend yield of 3.3%. PennyMac Mortgage Investment Trust pays out 117.6% 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 pays out 116.0% 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 has increased its dividend for 11 consecutive years.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
PennyMac Mortgage Investment Trust	53.81%	11.90%	1.32%
Prologis	39.08%	5.34%	3.28%

Analyst Recommendations

This is a breakdown of current recommendations and price targets for PennyMac Mortgage Investment Trust and Prologis, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PennyMac Mortgage Investment Trust	0	4	3	0	2.43
Prologis	0	7	8	1	2.63

PennyMac Mortgage Investment Trust currently has a consensus target price of $14.93, indicating a potential upside of 11.16%. Prologis has a consensus target price of $131.25, indicating a potential upside of 13.34%. Given Prologis’ stronger consensus rating and higher probable upside, analysts clearly believe Prologis is more favorable than PennyMac Mortgage Investment Trust.

Valuation & Earnings

This table compares PennyMac Mortgage Investment Trust and Prologis”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PennyMac Mortgage Investment Trust	$429.02 million	2.72	$199.65 million	$1.36	9.88
Prologis	$8.02 billion	13.37	$3.06 billion	$3.31	34.98

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

Summary

Prologis beats PennyMac Mortgage Investment Trust on 13 of the 18 factors compared between the two stocks.

About PennyMac Mortgage Investment Trust

PennyMac Mortgage Investment Trust, through its subsidiary, primarily invests in mortgage-related assets in the United States. The company operates through: Credit Sensitive Strategies, Interest Rate Sensitive Strategies, Correspondent Production segments. Its Credit Sensitive Strategies segment invests in credit risk transfer (CRT) agreements, CRT securities, subordinate mortgage-backed securities (MBS), distressed loans, and real estate. The company's Interest Rate Sensitive Strategies segment engages in investing in mortgage servicing rights, excess servicing spreads, and agency and senior non-agency MBS, as well as related interest rate hedging activities. Its Correspondent Production segment is involved in purchasing, pooling, and reselling newly originated prime credit residential loans directly or in the form of MBS. The company primarily sells its loans to government-sponsored entities or PennyMac Loan Services, LLC. 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 shareholders. The company was incorporated in 2009 and is headquartered in Westlake Village, California.

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.