PennyMac Mortgage Investment Trust (NYSE:PMT) versus Prologis (NYSE:PLD) Financial Contrast

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

Risk & Volatility

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

Institutional and Insider Ownership

93.5% of Prologis shares are owned by institutional investors. Comparatively, 67.4% of PennyMac Mortgage Investment Trust shares are owned by institutional investors. 0.5% of Prologis shares are owned by company insiders. Comparatively, 0.9% of PennyMac Mortgage Investment Trust shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Dividends

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

Analyst Ratings

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

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

Prologis presently has a consensus price target of $131.25, suggesting a potential upside of 13.38%. PennyMac Mortgage Investment Trust has a consensus price target of $14.93, suggesting a potential upside of 11.16%. Given Prologis’ stronger consensus rating and higher probable upside, equities analysts plainly believe Prologis is more favorable than PennyMac Mortgage Investment Trust.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Prologis	$8.02 billion	13.36	$3.06 billion	$3.31	34.97
PennyMac Mortgage Investment Trust	$163.44 million	7.14	$199.65 million	$1.36	9.88

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.

Profitability

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

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

Summary

Prologis beats PennyMac Mortgage Investment 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 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.