EastGroup Properties (NYSE:EGP – Get Free Report) and SEGRO (OTCMKTS:SEGXF – Get Free Report) are both large-cap real estate companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, dividends, risk, institutional ownership, profitability, analyst recommendations and valuation.
Volatility & Risk
EastGroup Properties has a beta of 1.03, indicating that its share price is 3% more volatile than the S&P 500. Comparatively, SEGRO has a beta of 1.14, indicating that its share price is 14% more volatile than the S&P 500.
Insider and Institutional Ownership
92.1% of EastGroup Properties shares are held by institutional investors. 1.0% of EastGroup Properties shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| EastGroup Properties | $753.19 million | 14.87 | $257.40 million | $5.70 | 36.53 |
| SEGRO | $957.24 million | 18.29 | $726.60 million | N/A | N/A |
SEGRO has higher revenue and earnings than EastGroup Properties.
Analyst Ratings
This is a summary of recent recommendations and price targets for EastGroup Properties and SEGRO, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| EastGroup Properties | 0 | 6 | 12 | 0 | 2.67 |
| SEGRO | 1 | 4 | 1 | 1 | 2.29 |
EastGroup Properties presently has a consensus target price of $221.11, suggesting a potential upside of 6.19%. Given EastGroup Properties’ stronger consensus rating and higher possible upside, equities research analysts plainly believe EastGroup Properties is more favorable than SEGRO.
Profitability
This table compares EastGroup Properties and SEGRO’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| EastGroup Properties | 40.47% | 8.61% | 5.59% |
| SEGRO | N/A | N/A | N/A |
Summary
EastGroup Properties beats SEGRO on 8 of the 13 factors compared between the two stocks.
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.
About SEGRO
SEGRO is a UK Real Estate Investment Trust (REIT), listed on the London Stock Exchange and Euronext Paris, and is a leading owner, manager and developer of modern warehouses and industrial property. It owns or manages 10.8 million square metres of space (116 million square feet) valued at £20.6 billion serving customers from a wide range of industry sectors. Its properties are located in and around major cities and at key transportation hubs in the UK and in seven other European countries. For over 100 years SEGRO has been creating the space that enables extraordinary things to happen. From modern big box warehouses, used primarily for regional, national and international distribution hubs, to urban warehousing (including data centres) located close to major population centres and business districts, it provides high-quality assets that allow its customers to thrive. A commitment to be a force for societal and environmental good is integral to SEGRO’s purpose and strategy. Its Responsible SEGRO framework focuses on three long-term priorities where the company believes it can make the greatest impact: Championing Low-Carbon Growth, Investing in Local Communities and Environments and Nurturing Talent. Striving for the highest standards of innovation, sustainable business practices and enabling economic and societal prosperity underpins SEGRO’s ambition to be the best property company.
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