Compare First Industrial Realty Trust, Inc. (FR) vs Terreno Realty Corporation (TRNO) Stock

Terreno Realty Corporation (TRNO) offers the better valuation at 16.9x trailing P/E (48.7x forward), making it the more compelling value choice. Analysts rate First Industrial Realty Trust, Inc. (FR) a "Buy" — based on 29 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, Terreno Realty Corporation (TRNO) is the cheapest at 16.9x versus First Industrial Realty Trust, Inc. at 29.1x. On forward P/E, First Industrial Realty Trust, Inc. is actually cheaper at 36.5x — notably different from the trailing picture, reflecting expected earnings growth. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Terreno Realty Corporation wins at 1.37x versus First Industrial Realty Trust, Inc.'s 12.55x — a reasonable growth-adjusted valuation.

Over the past 5 years, First Industrial Realty Trust, Inc. (FR) delivered a total return of +62.7%, compared to +31.3% for Terreno Realty Corporation (TRNO). A $10,000 investment in FR five years ago would be worth approximately $16K today (assuming dividends reinvested). Over 10 years, the gap is even starker: TRNO returned +255.5% versus FR's +245.4%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), First Industrial Realty Trust, Inc. (FR) is the lower-risk stock at 0.78β versus Terreno Realty Corporation's 0.80β — meaning TRNO is approximately 2% more volatile than FR relative to the S&P 500. On balance sheet safety, Terreno Realty Corporation (TRNO) carries a lower debt/equity ratio of 29% versus 81% for First Industrial Realty Trust, Inc. — giving it more financial flexibility in a downturn.

Terreno Realty Corporation (TRNO) is the more profitable company, earning 84.6% net margin versus 42.7% for First Industrial Realty Trust, Inc. — meaning it keeps 84.6% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: FR leads at 44.3% versus 40.3% for TRNO. At the gross margin level — before operating expenses — FR leads at 72.6%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential. By this metric, Terreno Realty Corporation (TRNO) is the more undervalued stock at a PEG of 1.37x versus First Industrial Realty Trust, Inc.'s 12.55x. A PEG below 1.5 suggests fair-to-attractive pricing relative to expected growth. On forward earnings alone, First Industrial Realty Trust, Inc. (FR) trades at 36.5x forward P/E versus 48.7x for Terreno Realty Corporation — 12.2x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for TRNO: 5.4% to $69.60.

All stocks in this comparison pay dividends. Terreno Realty Corporation (TRNO) offers the highest yield at 3.0%, versus 2.3% for First Industrial Realty Trust, Inc. (FR).

For long-horizon retirement investors, First Industrial Realty Trust, Inc. (FR) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.78), 2.3% yield, +245.4% 10Y return). Both have compounded well over 10 years (FR: +245.4%, TRNO: +255.5%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Real Estate sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both. In terms of investment character: FR is a small-cap quality compounder stock; TRNO is a small-cap deep-value stock. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.