Eastgroup Properties (NYSE:EGP) vs. Brandywine Realty Trust (NYSE:BDN) Head to Head Comparison
Eastgroup Properties (NYSE:EGP) and Brandywine Realty Trust (NYSE:BDN) are both mid-cap finance companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, dividends, valuation, profitability, institutional ownership, risk and analyst recommendations.
This table compares Eastgroup Properties and Brandywine Realty Trust’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Brandywine Realty Trust||17.40%||5.30%||2.38%|
This table compares Eastgroup Properties and Brandywine Realty Trust’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Eastgroup Properties||$300.39 million||14.58||$88.50 million||$4.67||25.52|
|Brandywine Realty Trust||$544.34 million||4.73||$136.32 million||$1.37||10.66|
Brandywine Realty Trust has higher revenue and earnings than Eastgroup Properties. Brandywine Realty Trust is trading at a lower price-to-earnings ratio than Eastgroup Properties, indicating that it is currently the more affordable of the two stocks.
Eastgroup Properties pays an annual dividend of $2.88 per share and has a dividend yield of 2.4%. Brandywine Realty Trust pays an annual dividend of $0.76 per share and has a dividend yield of 5.2%. Eastgroup Properties pays out 61.7% of its earnings in the form of a dividend. Brandywine Realty Trust pays out 55.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Eastgroup Properties has increased its dividend for 7 consecutive years and Brandywine Realty Trust has increased its dividend for 4 consecutive years. Brandywine Realty Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.
This is a breakdown of current ratings and target prices for Eastgroup Properties and Brandywine Realty Trust, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Brandywine Realty Trust||1||2||2||0||2.20|
Eastgroup Properties currently has a consensus target price of $100.03, indicating a potential downside of 16.06%. Brandywine Realty Trust has a consensus target price of $16.30, indicating a potential upside of 11.57%. Given Brandywine Realty Trust’s higher probable upside, analysts plainly believe Brandywine Realty Trust is more favorable than Eastgroup Properties.
Institutional & Insider Ownership
94.4% of Eastgroup Properties shares are owned by institutional investors. Comparatively, 97.9% of Brandywine Realty Trust shares are owned by institutional investors. 2.0% of Eastgroup Properties shares are owned by company insiders. Comparatively, 1.3% of Brandywine Realty Trust shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Risk & Volatility
Eastgroup Properties has a beta of 0.81, indicating that its share price is 19% less volatile than the S&P 500. Comparatively, Brandywine Realty Trust has a beta of 0.95, indicating that its share price is 5% less volatile than the S&P 500.
Eastgroup Properties beats Brandywine Realty Trust on 9 of the 16 factors compared between the two stocks.
About Eastgroup Properties
EastGroup Properties, Inc. 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 15,000 to 50,000 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. EastGroup's portfolio, including development projects and value-add acquisitions in lease-up and under construction, currently includes approximately 41.7 million square feet.
About Brandywine Realty Trust
Brandywine Realty Trust (NYSE: BDN) is one of the largest, publicly traded, full-service, integrated real estate companies in the United States with a core focus in the Philadelphia, Washington, D.C., and Austin markets. Organized as a real estate investment trust (REIT), we own, develop, lease and manage an urban, town center and transit-oriented portfolio comprising 181 properties and 24.8 million square feet as of December 31, 2018, which excludes assets held for sale. Our purpose is to shape, connect and inspire the world around us through our expertise, the relationships we foster, the communities in which we live and work, and the history we build together.
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