The shares of Duke Realty Corporation (NYSE:DRE) and Prologis, Inc. (NYSE:PLD) were among the active stocks of the last trading sessions. Duke Realty Corporation (NYSE:DRE) soared to 1.31% closing at the price of $28.62 whereas the shares of Prologis, Inc. (NYSE:PLD) soared 1.3% with the increase of 0.86 points closing at the price of $67.06. Duke Realty Corporation has currently increase 11.54% in its stock over the period of 6-months while its rival Prologis, Inc. added 8.83% in the previous 6-months.
Now we have to analyze the facts that if the stocks were worthy off investors’ money? The facts to analyze here are risks, profitability, returns and price trends.
Returns and Profitability
Profitability and returns are the main reason of investment, the investors are looking for profits that they get and return they should expect over the period of time.
The first and foremost return that is considered while making an investment is the ROI or Return on Investment. The ROI is the ratio between the profit against the cost of investment. Currently the ROI of Duke Realty Corporation (NYSE:DRE) is 5.2% while the ROI of Prologis, Inc. (NYSE:PLD) is 2.6%. Another figure that is to be considered while analyzing the profitability of a share is its EBITDA margin, DRE’s EBITDA Margin is 27.82 whereas PLD’s is 25.36.
Both the profitability ratios suggest that Duke Realty Corporation (NYSE:DRE) is more suitable investment in terms of profitability and return.
EPS & Surprise Factor
Duke Realty Corporation (NYSE:DRE) reported $0.54/share EPS for the previous quarter where analysts were predicting an EPS to be $0.11/share Thus beating the analyst Estimates with a Surprise Factor of 390.9 Percent. While, Prologis, Inc. (NYSE:PLD) reported EPS of $0.62/share in the last quarter. The analysts projected EPS of $0.38/share depicting a Surprise of 63.2 Percent.
Taking a look at Earnings per Share, Duke Realty Corporation tends to be beating the analyst estimates more than Prologis, Inc.. so DRE is more profitable than PLD.
Technical Analysis of Duke Realty Corporation & Prologis, Inc.
Moving average convergence divergence (MACD) shows that Duke Realty Corporation (NYSE:DRE) is on a PRICE RELATIVITY trend While Prologis, Inc. (NYSE:PLD) is on PRICE RELATIVITY trend. The trend for the past 10-days shows that the Duke Realty Corporation was in BULLISH territory and Prologis, Inc. was in BEARISH territory.
DRE’s current statistics gauge that the stock candle is BULLISH with HIGH volatility. While PLD’s candle is BULLISH with MEDIUM.
EPS Growth Rate: DRE’s 6% versus PLD’s -6.05%
Another shareholder value can be analyzed through the EPS growth rate; the next 5 years EPS growth rate is predicted by the analysts after the analyzing the previous trends. The next 5 year EPS growth rate of Duke Realty Corporation (NYSE:DRE) is predicted at 6% while Prologis, Inc. (NYSE:PLD) stands at -6.05%. These numbers suggest that DRE is more suitable investment in terms of EPS growth rate.
Financial Risk and Liquidity Concerns
The current ratio and the debt ratio are the two ratios that show the investor how quickly the company is able to payout its debt and how quickly it can cover its obligations. The current ratio of DRE stands at 0 while PLD is at 0 whereas the debt ratio of the prior is 0.52 while the debt ratio of the later is 0.61.
The values of the both ratios suggest that PLD is more suitable investment when the liquidity and risk is the main concern.
While making an investment, another main factor to consider before investing is the analyst recommendation on the scale of 1 to 5 where 1 is strong buy, 2 is buy, 3 is hold, 4 is Sell and 5 is strong sell. Analyst recommend 2.3 for DRE and 1.8 for PLD which means DRE has Hold rating whereas PLD has Buy rating.
Another recommendation of analyst that is to be considered worthy is the price target. The mare price or price trend does not suggest the suitability of a stock. The price target set by analyst is also to be considered while investing as it suggests to what extent the stock will rise or fall in the near future. The price target set for DRE is $30.54 which is 6.29% of its current price while PLD has price target of 71.75 which is 6.54% of its current price.
Valuation is the process of determining the company’s worth for an investor, the valuation ratios give an insight to that worthiness.
DRE currently has price to earning P/E ratio of 27.87 whereas PLD has 19.3 while the forward P/E ratio for the prior stands at 65.49 and for the later it depicts the value of 36.23.
The price to Book P/B for DRE is 2.19, Price to Sale is at 11.93 and for PLD these ratios stand at 2.29 and 16.71.