Rexford Industrial Realty (NASDAQ: REXR) and EastGroup Properties (NYSE:EGP) are both financials companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, dividends, profitabiliy, analyst recommendations, institutional ownership, risk and valuation.

Dividends

EastGroup Properties pays an annual dividend of $2.48 per share and has a dividend yield of 2.9%. Rexford Industrial Realty does not pay a dividend. 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. Rexford Industrial Realty has raised its dividend for 5 consecutive years.

Analyst Recommendations

This is a summary of recent ratings and target prices for Rexford Industrial Realty and EastGroup Properties, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Rexford Industrial Realty 0 2 3 0 2.60
EastGroup Properties 1 7 1 0 2.00

Rexford Industrial Realty currently has a consensus target price of $28.00, suggesting a potential downside of 0.32%. EastGroup Properties has a consensus target price of $77.14, suggesting a potential downside of 10.25%. Given Rexford Industrial Realty’s stronger consensus rating and higher possible upside, analysts plainly believe Rexford Industrial Realty is more favorable than EastGroup Properties.

Institutional and Insider Ownership

95.9% of EastGroup Properties shares are owned by institutional investors. 2.9% of EastGroup Properties shares are owned by 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.

Valuation and Earnings

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

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Rexford Industrial Realty $139.65 million 14.24 $81.70 million N/A N/A
EastGroup Properties $263.59 million 11.14 $161.56 million $2.37 36.27

EastGroup Properties has higher revenue and earnings than Rexford Industrial Realty.

Profitability

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

Net Margins Return on Equity Return on Assets
Rexford Industrial Realty 16.18% 1.96% 1.51%
EastGroup Properties 30.20% 12.05% 4.38%

Summary

EastGroup Properties beats Rexford Industrial Realty on 8 of the 15 factors compared between the two stocks.

Rexford Industrial Realty Company Profile

Rexford Industrial Realty, Inc. is a self-administered and self-managed full-service real estate investment trust (REIT). The Company is focused on owning, operating and acquiring industrial properties in Southern California infill markets. Rexford Industrial Realty, L.P. is the operating partnership of the Company. Through its controlling interest in Operating Partnership and its subsidiaries, the Company owns, manages, leases, acquires and develops industrial real estate located in Southern California infill markets, and from time to time, acquires or provides mortgage debt secured by industrial property. As of July 19, 2017, the Company’s consolidated portfolio consisted of 142 properties with approximately 17.7 million rentable square feet. In addition, the Company managed an additional 19 properties with approximately 1.2 million rentable square feet.

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.

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