Prologis and Union Pacific: Investment Insights
Prologis (NYSE: PLD) and Union Pacific (NYSE: UNP) are both integral to the logistics sector, but recent price setbacks present buy opportunities for long-term investors. Prologis, with a warehouse footprint of 1.3 billion square feet and revenues tied to $2.7 trillion in goods annually, signed 58 million square feet of new leases in Q1 2025 and broke ground on $650 million in new developments, significantly outpacing the industry average.
Union Pacific operates 32,693 miles of railroad track and reported a 7% increase in carload revenue, generating $2.2 billion in cash. However, its growth limitations, linked to the constraints of its railroad business and a network nearing capacity, contrast sharply with Prologis’s expansion potential in the growing e-commerce market, projected to exceed 30% of U.S. retail sales by 2030.
For investors seeking growth and dividends, Prologis offers a better value proposition with a 3.8% dividend yield compared to Union Pacific’s 2.4% amid ongoing tariff concerns for the latter. As both companies navigate the evolving landscape of logistics and e-commerce, Prologis stands out as the more promising option for capitalizing on future growth.
