Financial Comparison: Kilroy Realty (NYSE:KRC) vs. Prologis (NYSE:PLD)

Prologis (NYSE:PLD) and Kilroy Realty (NYSE:KRC) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, profitability, valuation, risk, earnings and dividends.

Dividends

Prologis pays an annual dividend of $4.28 per share and has a dividend yield of 3.3%. Kilroy Realty pays an annual dividend of $2.16 per share and has a dividend yield of 7.6%. Prologis pays out 120.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Kilroy Realty pays out 93.5% 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 12 consecutive years. Kilroy Realty is clearly the better dividend stock, given its higher yield and lower payout ratio.

Earnings & Valuation

This table compares Prologis and Kilroy Realty”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Prologis	$8.79 billion	13.64	$3.33 billion	$3.55	36.24
Kilroy Realty	$1.11 billion	3.01	$276.12 million	$2.31	12.23

Prologis has higher revenue and earnings than Kilroy Realty. Kilroy 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 Ratings

This is a breakdown of recent ratings and price targets for Prologis and Kilroy Realty, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Prologis	0	7	14	0	2.67
Kilroy Realty	2	10	2	1	2.13

Prologis presently has a consensus target price of $137.20, indicating a potential upside of 6.66%. Kilroy Realty has a consensus target price of $38.77, indicating a potential upside of 37.26%. Given Kilroy Realty’s higher possible upside, analysts clearly believe Kilroy Realty is more favorable than Prologis.

Volatility & Risk

Prologis has a beta of 1.41, suggesting that its share price is 41% more volatile than the S&P 500. Comparatively, Kilroy Realty has a beta of 1.1, suggesting that its share price is 10% more volatile than the S&P 500.

Institutional and Insider Ownership

93.5% of Prologis shares are held by institutional investors. Comparatively, 94.2% of Kilroy Realty shares are held by institutional investors. 0.5% of Prologis shares are held by company insiders. Comparatively, 2.5% of Kilroy Realty shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Prologis	37.86%	5.79%	3.41%
Kilroy Realty	24.82%	4.91%	2.53%

Summary

Prologis beats Kilroy Realty on 12 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 Kilroy Realty

Kilroy Realty Corporation (NYSE: KRC, the company, Kilroy) is a leading U.S. landlord and developer, with operations in San Diego, Greater Los Angeles, the San Francisco Bay Area, Greater Seattle and Austin. The company has earned global recognition for sustainability, building operations, innovation and design. As a pioneer and innovator in the creation of a more sustainable real estate industry, the company's approach to modern business environments helps drive creativity and productivity for some of the world's leading technology, entertainment, life science and business services companies. The company is a publicly traded real estate investment trust (REIT) and member of the S&P MidCap 400 Index with more than seven decades of experience developing, acquiring and managing office, life science and mixed-use projects. As of December 31, 2023, Kilroy's stabilized portfolio totaled approximately 17.0 million square feet of primarily office and life science space that was 85.0% occupied and 86.4% leased. The company also had approximately 1,000 residential units in Hollywood and San Diego, which had a quarterly average occupancy of 92.5%. In addition, the company had two in-process life science redevelopment projects totaling approximately 100,000 square feet with total estimated redevelopment costs of $80.0 million and one approximately 875,000 square foot in-process development project with a total estimated investment of $1.0 billion.