Mackenzie Realty Capital (NASDAQ:MKZR) versus Prologis (NYSE:PLD) Critical Analysis

Prologis (NYSE:PLD) and Mackenzie Realty Capital (NASDAQ:MKZR) are both finance companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, dividends, valuation, risk, profitability, institutional ownership and earnings.

Analyst Ratings

This is a summary of current ratings for Prologis and Mackenzie Realty Capital, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Prologis	0	7	14	0	2.67
Mackenzie Realty Capital	1	0	0	0	1.00

Prologis presently has a consensus price target of $137.20, suggesting a potential upside of 2.07%. Given Prologis’ stronger consensus rating and higher possible upside, research analysts clearly believe Prologis is more favorable than Mackenzie Realty Capital.

Volatility & Risk

Prologis has a beta of 1.41, indicating that its stock price is 41% more volatile than the S&P 500. Comparatively, Mackenzie Realty Capital has a beta of -1.15, indicating that its stock price is 215% less volatile than the S&P 500.

Profitability

This table compares Prologis and Mackenzie Realty Capital’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%
Mackenzie Realty Capital	-122.81%	-23.62%	-9.13%

Dividends

Prologis pays an annual dividend of $4.28 per share and has a dividend yield of 3.2%. Mackenzie Realty Capital pays an annual dividend of $2.00 per share and has a dividend yield of 54.8%. 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. Mackenzie Realty Capital pays out -20.3% of its earnings in the form of a dividend. Prologis has raised its dividend for 12 consecutive years. Mackenzie Realty Capital is clearly the better dividend stock, given its higher yield and lower payout ratio.

Valuation and Earnings

This table compares Prologis and Mackenzie Realty Capital”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Prologis	$8.79 billion	14.21	$3.33 billion	$3.55	37.86
Mackenzie Realty Capital	$18.21 million	0.39	-$25.92 million	($9.87)	-0.37

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

Institutional & Insider Ownership

93.5% of Prologis shares are owned by institutional investors. 0.6% of Prologis shares are owned by company insiders. Comparatively, 6.3% of Mackenzie Realty Capital shares are owned by company 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.

Summary

Prologis beats Mackenzie Realty Capital on 14 of the 17 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 Mackenzie Realty Capital

MacKenzie Realty Capital Inc. is a REIT which focused on investing in multifamily housing and office real estate properties located principally in the United States. MacKenzie Realty Capital Inc. is based in ORINDA, Calif.