Comparing Prologis (NYSE:PLD) and Mack-Cali Realty (NYSE:CLI)

Prologis (NYSE:PLD) and Mack-Cali Realty (NYSE:CLI) are both finance companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, earnings, dividends, risk, profitability, analyst recommendations and institutional ownership.

Valuation & Earnings

This table compares Prologis and Mack-Cali Realty’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Prologis $3.33 billion 22.25 $1.57 billion $3.31 30.29
Mack-Cali Realty $350.93 million 3.57 $111.86 million $1.62 8.52

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

Analyst Recommendations

This is a breakdown of recent recommendations for Prologis and Mack-Cali Realty, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Prologis 0 2 14 0 2.88
Mack-Cali Realty 1 4 2 0 2.14

Prologis currently has a consensus target price of $106.36, indicating a potential upside of 6.07%. Mack-Cali Realty has a consensus target price of $20.29, indicating a potential upside of 47.00%. Given Mack-Cali Realty’s higher possible upside, analysts plainly believe Mack-Cali Realty is more favorable than Prologis.

Insider & Institutional Ownership

94.8% of Prologis shares are held by institutional investors. Comparatively, 76.3% of Mack-Cali Realty shares are held by institutional investors. 0.9% of Prologis shares are held by company insiders. Comparatively, 6.8% of Mack-Cali Realty shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Prologis and Mack-Cali Realty’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Prologis 43.27% 5.55% 3.66%
Mack-Cali Realty -53.81% -5.80% -1.77%

Risk & Volatility

Prologis has a beta of 0.9, suggesting that its stock price is 10% less volatile than the S&P 500. Comparatively, Mack-Cali Realty has a beta of 0.97, suggesting that its stock price is 3% less volatile than the S&P 500.

Dividends

Prologis pays an annual dividend of $2.32 per share and has a dividend yield of 2.3%. Mack-Cali Realty pays an annual dividend of $0.80 per share and has a dividend yield of 5.8%. Prologis pays out 70.1% of its earnings in the form of a dividend. Mack-Cali Realty pays out 49.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Prologis has increased its dividend for 1 consecutive years. Mack-Cali Realty is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Prologis beats Mack-Cali Realty on 12 of the 17 factors compared between the two stocks.

Prologis Company Profile

Prologis, Inc. is the global leader in logistics real estate with a focus on high-barrier, high growth markets. As of March 31, 2020, 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 965 million square feet (90 million square meters) in 19 countries. Prologis leases modern logistics facilities to a diverse base of approximately 5,500 customers principally across two major categories: business-to-business and retail/online fulfillment.

Mack-Cali Realty Company Profile

One of the country's leading real estate investment trusts (REITs), Mack-Cali Realty Corporation is an owner, manager and developer of premier office and multifamily properties in select waterfront and transit-oriented markets throughout the Northeast. Mack-Cali is headquartered in Jersey City, New Jersey, and is the visionary behind the city's flourishing waterfront, where the company is leading development, improvement and place-making initiatives for Harborside, a master-planned destination comprised of class A office, luxury apartments, diverse retail and restaurants, and public spaces. A fully-integrated and self-managed company, Mack-Cali has provided world-class management, leasing, and development services throughout New Jersey and the surrounding region for two decades. By regularly investing in its properties and innovative lifestyle amenity packages, Mack-Cali creates environments that empower tenants and residents to reimagine the way they work and live.

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