Comparing EastGroup Properties (EGP) & Its Peers

EastGroup Properties (NYSE:EGP) is one of 50 public companies in the “Industrial REITs” industry, but how does it contrast to its competitors? We will compare EastGroup Properties to similar companies based on the strength of its earnings, valuation, profitability, risk, dividends, institutional ownership and analyst recommendations.

Earnings and Valuation

This table compares EastGroup Properties and its competitors revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
EastGroup Properties	$770.49 million	$257.40 million	33.77
EastGroup Properties Competitors	$1.03 billion	$263.98 million	56.50

EastGroup Properties’ competitors have higher revenue and earnings than EastGroup Properties. EastGroup Properties is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Risk & Volatility

EastGroup Properties has a beta of 0.94, suggesting that its stock price is 6% less volatile than the S&P 500. Comparatively, EastGroup Properties’ competitors have a beta of 1.04, suggesting that their average stock price is 4% more volatile than the S&P 500.

Profitability

This table compares EastGroup Properties and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
EastGroup Properties	41.05%	8.90%	5.69%
EastGroup Properties Competitors	37.85%	5.72%	2.66%

Dividends

EastGroup Properties pays an annual dividend of $7.00 per share and has a dividend yield of 3.5%. EastGroup Properties pays out 118.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Industrial REITs” companies pay a dividend yield of 4.5% and pay out 103.3% of their earnings in the form of a dividend. EastGroup Properties has increased its dividend for 4 consecutive years. EastGroup Properties lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.

Insider & Institutional Ownership

92.1% of EastGroup Properties shares are owned by institutional investors. Comparatively, 61.8% of shares of all “Industrial REITs” companies are owned by institutional investors. 1.0% of EastGroup Properties shares are owned by insiders. Comparatively, 5.6% of shares of all “Industrial REITs” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current recommendations and price targets for EastGroup Properties and its competitors, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
EastGroup Properties	0	5	12	0	2.71
EastGroup Properties Competitors	419	2302	2551	75	2.43

EastGroup Properties currently has a consensus target price of $219.94, suggesting a potential upside of 10.39%. As a group, “Industrial REITs” companies have a potential upside of 48.07%. Given EastGroup Properties’ competitors higher possible upside, analysts clearly believe EastGroup Properties has less favorable growth aspects than its competitors.

Summary

EastGroup Properties competitors beat EastGroup Properties on 9 of the 15 factors compared.

About EastGroup Properties

EastGroup Properties, Inc. (NYSE: EGP), a member of the S&P Mid-Cap 400 and Russell 1000 Indexes, is a self-administered equity real estate investment trust focused on the development, acquisition and operation of industrial properties in major Sunbelt markets throughout the United States with an emphasis in the states of Florida, Texas, Arizona, California and North Carolina. The Company's goal is to maximize shareholder value by being a leading provider in its markets of functional, flexible and quality business distribution space for location sensitive customers (primarily in the 20,000 to 100,000 square foot range). The Company's strategy for growth is based on ownership of premier distribution facilities generally clustered near major transportation features in supply-constrained submarkets. The Company's portfolio, including development projects and value-add acquisitions in lease-up and under construction, currently includes approximately 59 million square feet.