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

Profitability

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

Net Margins Return on Equity Return on Assets
EastGroup Properties 30.20% 12.05% 4.38%
First Industrial Realty Trust 29.91% 8.88% 4.12%

Volatility and Risk

EastGroup Properties has a beta of 0.98, indicating that its share price is 2% less volatile than the S&P 500. Comparatively, First Industrial Realty Trust has a beta of 1, indicating that its share price has a similar volatility profile to the S&P 500.

Dividends

EastGroup Properties pays an annual dividend of $2.48 per share and has a dividend yield of 2.9%. First Industrial Realty Trust pays an annual dividend of $0.84 per share and has a dividend yield of 2.8%. EastGroup Properties pays out 104.6% 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 pays out 85.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. EastGroup Properties has increased its dividend for 3 consecutive years and First Industrial Realty Trust has increased its dividend for 5 consecutive years.

Valuation and Earnings

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

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
EastGroup Properties $263.59 million 11.16 $161.56 million $2.37 36.35
First Industrial Realty Trust $386.50 million 9.41 $253.02 million $0.98 30.96

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

Institutional and Insider Ownership

98.0% of EastGroup Properties shares are owned by institutional investors. Comparatively, 92.4% of First Industrial Realty Trust shares are owned by institutional investors. 2.9% of EastGroup Properties shares are owned by insiders. Comparatively, 1.8% of First Industrial Realty Trust shares are owned 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.

Analyst Recommendations

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
EastGroup Properties 1 7 2 0 2.10
First Industrial Realty Trust 0 4 1 0 2.20

EastGroup Properties currently has a consensus price target of $79.50, indicating a potential downside of 7.71%. First Industrial Realty Trust has a consensus price target of $30.25, indicating a potential downside of 0.30%. Given First Industrial Realty Trust’s stronger consensus rating and higher possible upside, analysts plainly believe First Industrial Realty Trust is more favorable than EastGroup Properties.

Summary

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

EastGroup Properties Company Profile

EastGroup Properties, Inc. is an equity real estate investment trust (REIT). The Company is focused on the development, acquisition and operation of industrial properties in various Sunbelt markets across the United States with an emphasis in the states of Florida, Texas, Arizona, California and North Carolina. The Company holds its properties as long-term investments but may determine to sell certain properties that no longer meet its investment criteria. The Company may provide financing in connection with such sales of property if market conditions require. In addition, the Company may provide financing to a partner or co-owner in connection with an acquisition of real estate in certain situations. The Company owned 327 industrial properties and one office building as of December 31, 2016. The Company’s properties in North Carolina include Lindbergh Business Park, Nations Ford Business Park and Airport Commerce Center in Charlotte area.

First Industrial Realty Trust Company Profile

First Industrial Realty Trust, Inc. is a real estate investment trust (REIT). The Trust is a self-administered real estate company, which owns, manages, acquires, sells, develops and redevelops industrial real estate. As of December 31, 2016, the Company’s in-service portfolio consisted of 215 light industrial properties, 53 research and development (R&D)/flex properties, 167 bulk warehouse properties and 100 regional warehouse properties containing an aggregate of approximately 62.2 million square feet of gross leasable area (GLA) located in 23 states. The Company’s in-service portfolio includes all properties that have reached stabilized occupancy, developed and redeveloped properties and acquired properties that are occupied at acquisition or one year from the acquisition date. The Company’s operations are conducted primarily through the First Industrial, L.P. (the Operating Partnership), of which the Company is the sole general partner.

Receive News & Stock Ratings for EastGroup Properties Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for EastGroup Properties Inc. and related stocks with our FREE daily email newsletter.