TRNO vs STAG

For growth investors, Terreno Realty Corporation (TRNO) is the stronger pick with 24.

5% revenue growth year-over-year, versus 10. 1% for STAG Industrial, Inc. (STAG). Terreno Realty Corporation (TRNO) offers the better valuation at 16. 6x trailing P/E (47. 7x forward), making it the more compelling value choice. Analysts rate Terreno Realty Corporation (TRNO) a "Buy" — based on 32 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.

6x versus STAG Industrial, Inc. at 26. 1x. On forward P/E, STAG Industrial, Inc. is actually cheaper at 37. 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. 35x versus STAG Industrial, Inc. 's 18. 40x — a reasonable growth-adjusted valuation.

Over the past 5 years, STAG Industrial, Inc.

(STAG) delivered a total return of +29. 7%, compared to +17. 5% for Terreno Realty Corporation (TRNO). Over 10 years, the gap is even starker: TRNO returned +235. 2% versus STAG's +153. 7%. 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. 55β versus Terreno Realty Corporation's 0. 69β — meaning TRNO is approximately 26% more volatile than STAG relative to the S&P 500. On balance sheet safety, Terreno Realty Corporation (TRNO) carries a lower debt/equity ratio of 29% versus 90% for STAG Industrial, Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Terreno Realty Corporation (TRNO) is pulling ahead at 24.

5% versus 10. 1% for STAG Industrial, Inc. (STAG). On earnings-per-share growth, the picture is similar: Terreno Realty Corporation grew EPS 104. 2% year-over-year, compared to 40. 4% for STAG Industrial, Inc.. Over a 3-year CAGR, TRNO leads at 19. 9% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Terreno Realty Corporation (TRNO) is the more profitable company, earning 84.

6% net margin versus 32. 4% for STAG Industrial, Inc. — meaning it keeps 84. 6% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: TRNO leads at 40. 3% versus 37. 7% for STAG. At the gross margin level — before operating expenses — STAG leads at 61. 3%, 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. 35x versus STAG Industrial, Inc. 's 18. 40x. A PEG below 1. 5 suggests fair-to-attractive pricing relative to expected growth. On forward earnings alone, STAG Industrial, Inc. (STAG) trades at 37. 5x forward P/E versus 47. 7x for Terreno Realty Corporation — 10. 3x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for STAG: 19. 6% to $45. 50.

All stocks in this comparison pay dividends.

STAG Industrial, Inc. (STAG) offers the highest yield at 4. 0%, versus 3. 1% for Terreno Realty Corporation (TRNO).

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. 55), 4. 0% yield, +153. 7% 10Y return). Both have compounded well over 10 years (STAG: +153. 7%, TRNO: +235. 2%), 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: TRNO is a small-cap high-growth stock; STAG is a small-cap income-oriented 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.