EastGroup Properties (NYSE:EGP – Get Free Report) is one of 50 publicly-traded companies in the “Industrial REITs” industry, but how does it weigh in compared to its peers? We will compare EastGroup Properties to similar companies based on the strength of its risk, institutional ownership, valuation, analyst recommendations, dividends, profitability and earnings.
Risk and Volatility
EastGroup Properties has a beta of 0.94, indicating that its stock price is 6% less volatile than the S&P 500. Comparatively, EastGroup Properties’ peers have a beta of 1.04, indicating that their average stock price is 4% more volatile than the S&P 500.
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 4.4% and pay out 104.3% of their earnings in the form of a dividend. EastGroup Properties has raised its dividend for 4 consecutive years. EastGroup Properties lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.
Institutional and Insider Ownership
92.1% of EastGroup Properties shares are held by institutional investors. Comparatively, 61.7% of shares of all “Industrial REITs” companies are held by institutional investors. 1.0% of EastGroup Properties shares are held by insiders. Comparatively, 5.6% of shares of all “Industrial REITs” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Profitability
This table compares EastGroup Properties and its peers’ 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 | 37.13% | 4.73% | 2.33% |
Analyst Ratings
This is a summary of recent ratings for EastGroup Properties and its peers, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| EastGroup Properties | 0 | 5 | 12 | 0 | 2.71 |
| EastGroup Properties Competitors | 416 | 2300 | 2547 | 75 | 2.43 |
EastGroup Properties currently has a consensus target price of $219.94, suggesting a potential upside of 9.41%. As a group, “Industrial REITs” companies have a potential upside of 45.66%. Given EastGroup Properties’ peers higher probable upside, analysts clearly believe EastGroup Properties has less favorable growth aspects than its peers.
Valuation & Earnings
This table compares EastGroup Properties and its peers top-line revenue, earnings per share and valuation.
| Gross Revenue | Net Income | Price/Earnings Ratio | |
| EastGroup Properties | $721.34 million | $257.40 million | 34.07 |
| EastGroup Properties Competitors | $999.88 million | $263.98 million | 54.25 |
EastGroup Properties’ peers have higher revenue and earnings than EastGroup Properties. EastGroup Properties is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.
Summary
EastGroup Properties peers 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.
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