EastGroup Properties (NYSE: EGP) and Granite Real Estate Investment Trust (NYSE:GRP) are both finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitability, valuation, risk and earnings.

Profitability

This table compares EastGroup Properties and Granite Real Estate Investment Trust’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
EastGroup Properties 30.03% 11.70% 4.34%
Granite Real Estate Investment Trust N/A N/A N/A

Volatility & Risk

EastGroup Properties has a beta of 0.98, suggesting that its share price is 2% less volatile than the S&P 500. Comparatively, Granite Real Estate Investment Trust has a beta of 1.99, suggesting that its share price is 99% more volatile than the S&P 500.

Dividends

EastGroup Properties pays an annual dividend of $2.56 per share and has a dividend yield of 2.8%. Granite Real Estate Investment Trust does not pay a dividend. EastGroup Properties pays out 107.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Granite Real Estate Investment Trust has increased its dividend for 5 consecutive years.

Insider & Institutional Ownership

96.3% of EastGroup Properties shares are owned by institutional investors. 2.9% of EastGroup Properties shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares EastGroup Properties and Granite Real Estate Investment Trust’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
EastGroup Properties $253.05 million 12.37 $95.50 million $2.38 38.20
Granite Real Estate Investment Trust N/A N/A N/A $1.29 30.64

EastGroup Properties has higher revenue and earnings than Granite Real Estate Investment Trust. Granite Real Estate Investment 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.

Analyst Ratings

This is a summary of current ratings and target prices for EastGroup Properties and Granite Real Estate Investment Trust, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
EastGroup Properties 2 9 2 0 2.00
Granite Real Estate Investment Trust 0 3 0 0 2.00

EastGroup Properties presently has a consensus price target of $86.82, indicating a potential downside of 4.51%. Granite Real Estate Investment Trust has a consensus price target of $45.50, indicating a potential upside of 15.13%. Given Granite Real Estate Investment Trust’s higher probable upside, analysts clearly believe Granite Real Estate Investment Trust is more favorable than EastGroup Properties.

Summary

EastGroup Properties beats Granite Real Estate Investment Trust on 9 of the 13 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.

Granite Real Estate Investment Trust Company Profile

Granite Real Estate Investment Trust is a real estate investment trust (REIT). It is engaged principally in the acquisition, development, construction, leasing, management and ownership of an industrial global rental portfolio of properties in North America and Europe leased primarily to Magna International Inc. and its automotive operating units. It is a service REIT with an international portfolio consisting of over 100 properties. It provides a range of services that includes sourcing and real estate acquisition, site development, assisting with government approvals and re-zoning to specific uses, build-to-suit construction, property renovation, project management and long-term leasing. In November 2013, Granite Real Estate Investment Trust completed its acquisition of a 2.5 million square foot portfolio of seven properties located in Germany and the Netherlands from funds managed by AEW Europe.

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