Lument Finance Trust (NYSE:LFT – received rating) and prologis (NYSE:PLD – received rating) are both financial companies, but which one is the better deal? We will compare the two companies based on their risk strength, analyst recommendations, earnings, profitability, institutional ownership, dividends, and valuation.
risk and volatility
Lument Finance Trust has a beta of 1.18, meaning its stock price is 18% more volatile than the S&P 500. In comparison, Prologis has a beta of 0.82, meaning its stock price is 18% less volatile than the S&P 500.
Insider and Institutional Property
Institutional investors hold 59.7% of Lument Finance Trust shares. In comparison, 93.5% of Prologis stock is held by institutional investors. 2.0% of the shares in Lument Finance Trust are held by company insiders. In comparison, 0.7% of Prologis stock is held 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.
profitability
This table compares the net margins, return on equity, and return on assets of Lument Finance Trust and Prologis.
| net margins | return on equity | return on investment | |
| Lument Finance Trust | 25.54% | 8.24% | 1.02% |
| prologue | 77.08% | 9.98% | 6.43% |
dividends
Lument Finance Trust pays an annual dividend of $0.24 per share and has a dividend yield of 9.4%. Prologis pays an annual dividend of $3.16 per share and has a 2.5% dividend yield. Lument Finance Trust pays out 100.0% of its earnings in the form of a dividend, indicating that it may not have sufficient earnings to cover its future dividend payment. Prologis pays out 63.3% of its earnings in the form of a dividend. Prologis has increased its dividend for 9 straight years.
Analyst Ratings
This is a summary of the latest ratings and recommendations for Lument Finance Trust and Prologis as reported by MarketBeat.
| sell reviews | keep ratings | Buy reviews | Strong buy recommendations | rating score | |
| Lument Finance Trust | 0 | 1 | 4 | 0 | 2.80 |
| prologue | 0 | 1 | 7 | 2 | 3.10 |
Lument Finance Trust currently has a consensus price target of $4.31, indicating a potential upside of 69.78%. Prologis has a consensus price target of $175.42, indicating a potential upside of 37.84%. Given Lument Finance Trust’s potential upside potential, equity analysts clearly believe Lument Finance Trust is cheaper than Prologis.
Rating & Result
This table compares the gross sales, earnings per share (EPS) and valuation of Lument Finance Trust and Prologis.
| gross receipts | price/sales ratio | net income | earnings per share | price-earnings ratio | |
| Lument Finance Trust | $36.19 million | 3.67 | $10.53 million | $0.24 | 10.58 |
| prologue | $4.76 billion | 19.79 | $2.94 billion | $4.99 | 25.50 |
Prologis has higher sales and earnings than Lument Finance Trust. Lument Finance Trust is trading at a lower price-to-earnings ratio than Prologis, suggesting it’s the cheaper of the two stocks at the moment.
summary
Prologis beats Lument Finance Trust on 14 of the 18 factors being compared between the two stocks.
Lument Finance Trust company profile (received rating)
Lument Finance Trust, Inc., a real estate investment trust, is focused on investing, financing and managing a portfolio of commercial real estate (CRE) debt investments in the United States. The Company invests primarily in commercial adjustable rate mortgages on mid-market multi-family properties; and other CRE-related investments, including mezzanine loans, preferred stock, commercial mortgage-backed securities, fixed-rate loans, home loans and other CRE debt instruments. Lument Finance Trust, Inc. qualifies as a real estate investment trust (REIT) under the Internal Revenue Code of 1986. As a REIT, it would not be subject to federal income tax if it distributes at least 90% of its taxable income to its shareholders. The company was formerly known as Hunt Companies Finance Trust, Inc. and changed its name to Lument Finance Trust, Inc. in December 2020. Lument Finance Trust, Inc. was founded in 2012 and is headquartered in New York, New York.
Prologis Company Profile (received rating)
Prologis, Inc. is the global leader in logistics real estate with a focus on high-growth, high-barrier markets. As of December 31, 2020, the Company owned or owned 100 percent or through co-investment ventures interests in properties and developments estimated to total approximately 984 million square feet (91 million square meters) in 19 countries. Prologis leases modern logistics facilities to a diverse base of approximately 5,500 customers primarily in two main categories: business-to-business and retail/online fulfillment.
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