Essential Properties Realty Trust (NYSE:EPRT – Get Free Report) and HG (OTCMKTS:STLY – Get Free Report) are both real estate companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, profitability, valuation, analyst recommendations, risk, institutional ownership and dividends.
Volatility and Risk
Essential Properties Realty Trust has a beta of 0.86, meaning that its stock price is 14% less volatile than the S&P 500. Comparatively, HG has a beta of 0.12, meaning that its stock price is 88% less volatile than the S&P 500.
Analyst Ratings
This is a breakdown of recent ratings for Essential Properties Realty Trust and HG, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Essential Properties Realty Trust | 0 | 0 | 11 | 1 | 3.08 |
| HG | 0 | 0 | 0 | 0 | 0.00 |
Institutional and Insider Ownership
97.0% of Essential Properties Realty Trust shares are owned by institutional investors. Comparatively, 1.7% of HG shares are owned by institutional investors. 0.8% of Essential Properties Realty Trust shares are owned by insiders. Comparatively, 75.7% of HG shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Earnings and Valuation
This table compares Essential Properties Realty Trust and HG”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Essential Properties Realty Trust | $561.22 million | 11.71 | $253.01 million | $1.29 | 23.57 |
| HG | $14.74 million | 1.28 | $1.53 million | $0.36 | 10.42 |
Essential Properties Realty Trust has higher revenue and earnings than HG. HG is trading at a lower price-to-earnings ratio than Essential Properties Realty Trust, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Essential Properties Realty Trust and HG’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Essential Properties Realty Trust | 43.51% | 6.34% | 3.81% |
| HG | 14.15% | 5.46% | 4.29% |
Summary
Essential Properties Realty Trust beats HG on 13 of the 15 factors compared between the two stocks.
About Essential Properties Realty Trust
Essential Properties Realty Trust, Inc., a real estate company, acquires, owns, and manages single-tenant properties in the United States. The company leases its properties to middle-market companies, such as restaurants, car washes, automotive services, medical and dental services, convenience stores, equipment rental, entertainment, early childhood education, grocery, and health and fitness on a long-term basis. As of December 31, 2021, it had a portfolio of 1, 451 properties. The company qualifies as a real estate investment trust for federal income tax purposes. It generally would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. The company was founded in 2016 and is headquartered in Princeton, New Jersey.
About HG
HG Holdings, Inc. engages in the title insurance and real estate businesses in the United States. It operates through four segments: Title Insurance Services, Reinsurance, Management Services, and Real Estate. The company provides title insurance, closing and/or escrow, and similar or related services in connection with residential and commercial real estate transactions. It also owns and operates a portfolio of single-tenant properties leased for the occupancy by U.S. government tenant agencies and sub-agencies, such as the Federal Bureau of Investigation, the Department of Veterans affairs, the Drug Enforcement Administration, Immigration & Customs Enforcement, the Social Security Administration, and the Department of Transportation. In addition, the company provides excess-of-loss reinsurance coverage related to catastrophic weather risk in Texas; and management advisory services, such as formation, operational, and restructuring services. The company was formerly known as Stanley Furniture Company, Inc. and changed its name to HG Holdings, Inc. in March 2018. HG Holdings, Inc. was incorporated in 1984 and is headquartered in Charlotte, North Carolina.
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