Head-To-Head Contrast: Seritage Growth Properties (NYSE:SRG) and Essential Properties Realty Trust (NYSE:EPRT)

Essential Properties Realty Trust (NYSE:EPRT) and Seritage Growth Properties (NYSE:SRG) are both real estate companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, valuation, institutional ownership, profitability and risk.

Institutional & Insider Ownership

97.0% of Essential Properties Realty Trust shares are owned by institutional investors. Comparatively, 78.9% of Seritage Growth Properties shares are owned by institutional investors. 0.8% of Essential Properties Realty Trust shares are owned by insiders. Comparatively, 0.2% of Seritage Growth Properties shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Essential Properties Realty Trust and Seritage Growth Properties”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Essential Properties Realty Trust	$561.22 million	10.31	$253.01 million	$1.29	20.74
Seritage Growth Properties	$18.20 million	5.82	-$68.21 million	($1.04)	-1.81

Essential Properties Realty Trust has higher revenue and earnings than Seritage Growth Properties. Seritage Growth Properties 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.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Essential Properties Realty Trust and Seritage Growth Properties, 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
Seritage Growth Properties	1	0	0	0	1.00

Essential Properties Realty Trust presently has a consensus price target of $36.02, suggesting a potential upside of 34.61%. Given Essential Properties Realty Trust’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Essential Properties Realty Trust is more favorable than Seritage Growth Properties.

Profitability

This table compares Essential Properties Realty Trust and Seritage Growth Properties’ 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%
Seritage Growth Properties	-419.02%	-17.06%	-12.94%

Risk & Volatility

Essential Properties Realty Trust has a beta of 0.85, meaning that its stock price is 15% less volatile than the S&P 500. Comparatively, Seritage Growth Properties has a beta of 2.19, meaning that its stock price is 119% more volatile than the S&P 500.

Summary

Essential Properties Realty Trust beats Seritage Growth Properties on 14 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 Seritage Growth Properties

Seritage Growth Properties operates as a real estate investment trust. The firm engages in the acquisition, ownership, development, redevelopment, management, and leasing of retail properties throughout the United States. Its property portfolio includes mall, shopping centers and freestanding locations. The company was founded on June 3, 2015 and is headquartered in New York, NY.