First Industrial Realty Trust (NYSE:FR) versus EastGroup Properties (NYSE:EGP) Critical Comparison

First Industrial Realty Trust (NYSE:FR) and EastGroup Properties (NYSE:EGP) are both real estate companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, analyst recommendations, earnings, risk, valuation, profitability and institutional ownership.

Profitability

This table compares First Industrial Realty Trust and EastGroup Properties’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
First Industrial Realty Trust	46.12%	12.60%	6.19%
EastGroup Properties	41.05%	8.90%	5.69%

Analyst Recommendations

This is a summary of current recommendations for First Industrial Realty Trust and EastGroup Properties, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Industrial Realty Trust	0	8	7	0	2.47
EastGroup Properties	0	5	12	0	2.71

First Industrial Realty Trust presently has a consensus price target of $64.93, suggesting a potential upside of 17.49%. EastGroup Properties has a consensus price target of $219.94, suggesting a potential upside of 11.01%. Given First Industrial Realty Trust’s higher possible upside, analysts clearly believe First Industrial Realty Trust is more favorable than EastGroup Properties.

Institutional and Insider Ownership

99.8% of First Industrial Realty Trust shares are owned by institutional investors. Comparatively, 92.1% of EastGroup Properties shares are owned by institutional investors. 1.1% of First Industrial Realty Trust shares are owned by insiders. Comparatively, 1.0% of EastGroup Properties shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Valuation and Earnings

This table compares First Industrial Realty Trust and EastGroup Properties”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Industrial Realty Trust	$727.08 million	10.08	$247.44 million	$2.69	20.55
EastGroup Properties	$770.49 million	13.83	$257.40 million	$5.90	33.58

EastGroup Properties has higher revenue and earnings than First Industrial Realty Trust. First Industrial 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.

Risk & Volatility

First Industrial Realty Trust has a beta of 1.01, meaning that its stock price is 1% more volatile than the S&P 500. Comparatively, EastGroup Properties has a beta of 0.94, meaning that its stock price is 6% less volatile than the S&P 500.

Dividends

First Industrial Realty Trust pays an annual dividend of $2.00 per share and has a dividend yield of 3.6%. EastGroup Properties pays an annual dividend of $7.00 per share and has a dividend yield of 3.5%. First Industrial Realty Trust pays out 74.3% of its earnings in the form of a dividend. 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. First Industrial Realty Trust has raised its dividend for 12 consecutive years and EastGroup Properties has raised its dividend for 4 consecutive years. First Industrial Realty Trust is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

First Industrial Realty Trust beats EastGroup Properties on 10 of the 17 factors compared between the two stocks.

About First Industrial Realty Trust

First Industrial Realty Trust is a real estate investment trust focused on owning, operating, acquiring and developing industrial properties in the United States. Its portfolio includes warehouses, distribution facilities and other buildings used for manufacturing and logistics. The company serves businesses that need space to store, move or produce goods, with properties in major U.S. industrial and distribution markets. First Industrial was established in 1994 and is headquartered in Chicago. Peter E. Baccile serves as the company’s president and chief executive officer.

About EastGroup Properties

EastGroup Properties, Inc. is a real estate investment trust that owns, develops, acquires and operates industrial properties. Its portfolio includes distribution and warehouse facilities, with an emphasis on multi-tenant properties serving businesses’ storage and logistics needs. The company focuses primarily on major markets in the Sunbelt, including locations in Texas, Florida, Arizona, California and the southeastern United States. Its properties are designed to support regional distribution and other industrial uses.