Compare STAG Industrial, Inc. (STAG) vs Prologis, Inc. (PLD) Stock

STAG Industrial, Inc. (STAG) offers the better valuation at 26.9x trailing P/E (38.5x forward), making it the more compelling value choice. Analysts rate STAG Industrial, Inc. (STAG) a "Buy" — based on 21 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, STAG Industrial, Inc. (STAG) is the cheapest at 26.9x versus Prologis, Inc. at 35.6x. On forward P/E, STAG Industrial, Inc. is actually cheaper at 38.5x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Prologis, Inc. wins at 3.94x versus STAG Industrial, Inc.'s 18.92x.

Over the past 5 years, Prologis, Inc. (PLD) delivered a total return of +60.5%, compared to +44.6% for STAG Industrial, Inc. (STAG). A $10,000 investment in PLD five years ago would be worth approximately $16K today (assuming dividends reinvested). Over 10 years, the gap is even starker: PLD returned +340.5% versus STAG's +204.2%. 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), STAG Industrial, Inc. (STAG) is the lower-risk stock at 0.66β versus Prologis, Inc.'s 0.85β — meaning PLD is approximately 28% more volatile than STAG relative to the S&P 500.

Prologis, Inc. (PLD) is the more profitable company, earning 45.5% net margin versus 32.3% for STAG Industrial, Inc. — meaning it keeps 45.5% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: PLD leads at 53.8% versus 0.7% for STAG. At the gross margin level — before operating expenses — STAG leads at 79.8%, 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, Prologis, Inc. (PLD) is the more undervalued stock at a PEG of 3.94x versus STAG Industrial, Inc.'s 18.92x. Both stocks trade at elevated growth-adjusted valuations, so expected growth needs to materialise. On forward earnings alone, STAG Industrial, Inc. (STAG) trades at 38.5x forward P/E versus 42.6x for Prologis, Inc. — 4.1x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for STAG: 14.7% to $45.00.

All stocks in this comparison pay dividends. STAG Industrial, Inc. (STAG) offers the highest yield at 3.9%, versus 2.6% for Prologis, Inc. (PLD).

For long-horizon retirement investors, STAG Industrial, Inc. (STAG) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.66), 3.9% yield, +204.2% 10Y return). Both have compounded well over 10 years (STAG: +204.2%, PLD: +340.5%), 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: STAG is a small-cap income-oriented stock; PLD is a mid-cap quality compounder 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.