Americold Realty Trust (NYSE:COLD – Get Free Report) and EastGroup Properties (NYSE:EGP – Get Free Report) are both real estate companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, risk, profitability, earnings and valuation.
Valuation and Earnings
This table compares Americold Realty Trust and EastGroup Properties”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Americold Realty Trust | $2.60 billion | 1.53 | -$114.55 million | ($1.59) | -8.79 |
| EastGroup Properties | $721.34 million | 14.61 | $257.40 million | $5.70 | 34.39 |
Volatility and Risk
Americold Realty Trust has a beta of 0.92, suggesting that its share price is 8% less volatile than the S&P 500. Comparatively, EastGroup Properties has a beta of 1, suggesting that its share price has a similar volatility profile to the S&P 500.
Insider and Institutional Ownership
98.1% of Americold Realty Trust shares are held by institutional investors. Comparatively, 92.1% of EastGroup Properties shares are held by institutional investors. 0.4% of Americold Realty Trust shares are held by company insiders. Comparatively, 1.0% of EastGroup Properties shares are held 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.
Dividends
Americold Realty Trust pays an annual dividend of $0.92 per share and has a dividend yield of 6.6%. EastGroup Properties pays an annual dividend of $7.00 per share and has a dividend yield of 3.6%. Americold Realty Trust pays out -57.9% of its earnings in the form of a dividend. EastGroup Properties pays out 122.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Americold Realty Trust has raised its dividend for 1 consecutive years and EastGroup Properties has raised its dividend for 4 consecutive years. Americold Realty Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.
Profitability
This table compares Americold Realty Trust and EastGroup Properties’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Americold Realty Trust | -17.44% | -16.14% | -5.68% |
| EastGroup Properties | 40.47% | 8.61% | 5.59% |
Analyst Recommendations
This is a breakdown of recent ratings and price targets for Americold Realty Trust and EastGroup Properties, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Americold Realty Trust | 2 | 9 | 5 | 0 | 2.19 |
| EastGroup Properties | 0 | 5 | 13 | 0 | 2.72 |
Americold Realty Trust currently has a consensus price target of $15.75, indicating a potential upside of 12.73%. EastGroup Properties has a consensus price target of $221.32, indicating a potential upside of 12.91%. Given EastGroup Properties’ stronger consensus rating and higher possible upside, analysts clearly believe EastGroup Properties is more favorable than Americold Realty Trust.
Summary
EastGroup Properties beats Americold Realty Trust on 13 of the 17 factors compared between the two stocks.
About Americold Realty Trust
Americold Realty Trust, Inc. is a real estate investment trust, which focuses on the ownership, operation, development, and acquisition of temperature-controlled warehouses. It operates through the following segments: Warehouse, Third-Party Managed, Transportation, and Other. The Warehouse segment collects rent and storage fees from customers to store frozen and perishable food and other products within the firm’s real estate portfolio. The Third-Party Managed segment manages warehouses on behalf of third parties and provides warehouse management services to food retailers and manufacturers in customer-owned facilities. The Transportation segment is involved in brokering and managing transportation of frozen and perishable food and other products. The Other segment includes ownership in a limestone quarry in Carthage, Missouri. The company was founded in 1931 and is headquartered in Atlanta, GA.
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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