Comparing Apartment Investment and Management (AIV) and Prologis (PLD)

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

Profitability

This table compares Apartment Investment and Management and Prologis’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Apartment Investment and Management 36.78% 25.11% 5.92%
Prologis 74.17% 10.11% 6.36%

Dividends

Apartment Investment and Management pays an annual dividend of $1.52 per share and has a dividend yield of 3.4%. Prologis pays an annual dividend of $1.92 per share and has a dividend yield of 2.8%. Apartment Investment and Management pays out 62.0% of its earnings in the form of a dividend. Prologis pays out 68.3% 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. Apartment Investment and Management has increased its dividend for 7 consecutive years and Prologis has increased its dividend for 4 consecutive years. Apartment Investment and Management is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Ratings

This is a breakdown of current ratings for Apartment Investment and Management and Prologis, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Apartment Investment and Management 1 6 3 0 2.20
Prologis 0 2 13 0 2.87

Apartment Investment and Management presently has a consensus price target of $45.75, suggesting a potential upside of 2.88%. Prologis has a consensus price target of $70.87, suggesting a potential upside of 4.96%. Given Prologis’ stronger consensus rating and higher possible upside, analysts clearly believe Prologis is more favorable than Apartment Investment and Management.

Valuation and Earnings

This table compares Apartment Investment and Management and Prologis’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Apartment Investment and Management $1.01 billion 6.96 $315.77 million $2.45 18.15
Prologis $2.62 billion 16.23 $1.65 billion $2.81 24.03

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

Insider & Institutional Ownership

98.8% of Apartment Investment and Management shares are held by institutional investors. Comparatively, 95.2% of Prologis shares are held by institutional investors. 1.2% of Apartment Investment and Management shares are held by insiders. Comparatively, 1.3% of Prologis shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Risk & Volatility

Apartment Investment and Management has a beta of 0.41, indicating that its stock price is 59% less volatile than the S&P 500. Comparatively, Prologis has a beta of 0.74, indicating that its stock price is 26% less volatile than the S&P 500.

Summary

Prologis beats Apartment Investment and Management on 12 of the 17 factors compared between the two stocks.

Apartment Investment and Management Company Profile

Aimco is a real estate investment trust focused on the ownership and management of quality apartment communities located in select markets in the United States. Aimco is one of the country's largest owners and operators of apartments, with ownership interests in 133 communities in 17 states and the District of Columbia. Aimco common shares are traded on the New York Stock Exchange under the ticker symbol AIV, and are included in the S&P 500.

Prologis Company Profile

Prologis, Inc. is the global leader in logistics real estate with a focus on high-barrier, high-growth markets. As of June 30, 2018, 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 685 million square feet (64 million square meters) in 19 countries. Prologis leases modern distribution facilities to a diverse base of approximately 5,000 customers across two major categories: business-to-business and retail/online fulfillment.

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