Head to Head Contrast: Granite Point Mortgage Trust (NYSE:GPMT) and Prologis (NYSE:PLD)

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

Dividends

Prologis pays an annual dividend of $3.84 per share and has a dividend yield of 2.9%. Granite Point Mortgage Trust pays an annual dividend of $0.20 per share and has a dividend yield of 7.8%. 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. Granite Point Mortgage Trust pays out -8.7% of its earnings in the form of a dividend. Prologis has raised its dividend for 11 consecutive years. Granite Point Mortgage Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

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

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

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Prologis	$7.77 billion	15.58	$3.06 billion	$3.42	38.21
Granite Point Mortgage Trust	$263.73 million	0.49	-$63.20 million	($2.31)	-1.11

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.

Insider and Institutional Ownership

93.5% of Prologis shares are owned by institutional investors. Comparatively, 51.6% of Granite Point Mortgage Trust shares are owned by institutional investors. 0.5% of Prologis shares are owned by company insiders. Comparatively, 2.3% of Granite Point Mortgage Trust shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Prologis and Granite Point Mortgage Trust, as provided by MarketBeat.com.

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

Prologis presently has a consensus price target of $133.12, suggesting a potential upside of 1.86%. Granite Point Mortgage Trust has a consensus price target of $5.08, suggesting a potential upside of 98.57%. Given Granite Point Mortgage Trust’s higher possible upside, analysts plainly believe Granite Point Mortgage Trust is more favorable than Prologis.

Risk & Volatility

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

Summary

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

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.

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.