Head-To-Head Comparison: First Industrial Realty Trust (FR) vs. EastGroup Properties (EGP)
First Industrial Realty Trust (NYSE: FR) and EastGroup Properties (NYSE:EGP) are both mid-cap finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, dividends, institutional ownership, valuation, analyst recommendations, profitability and earnings.
This is a summary of recent recommendations and price targets for First Industrial Realty Trust and EastGroup Properties, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|First Industrial Realty Trust||0||4||1||0||2.20|
First Industrial Realty Trust currently has a consensus target price of $30.25, suggesting a potential downside of 0.75%. EastGroup Properties has a consensus target price of $79.50, suggesting a potential downside of 8.15%. Given First Industrial Realty Trust’s stronger consensus rating and higher possible upside, equities analysts plainly believe First Industrial Realty Trust is more favorable than EastGroup Properties.
Earnings & Valuation
This table compares First Industrial Realty Trust and EastGroup Properties’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|First Industrial Realty Trust||$386.50 million||9.45||$253.02 million||$0.98||31.10|
|EastGroup Properties||$263.59 million||11.21||$161.56 million||$2.37||36.52|
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.
This table compares First Industrial Realty Trust and EastGroup Properties’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|First Industrial Realty Trust||29.91%||8.88%||4.12%|
Risk & Volatility
First Industrial Realty Trust has a beta of 1, suggesting that its share price has a similar volatility profile to the S&P 500.Comparatively, EastGroup Properties has a beta of 0.98, suggesting that its share price is 2% less volatile than the S&P 500.
Insider & Institutional Ownership
92.4% of First Industrial Realty Trust shares are owned by institutional investors. Comparatively, 98.0% of EastGroup Properties shares are owned by institutional investors. 1.8% of First Industrial Realty Trust shares are owned by insiders. Comparatively, 2.9% of EastGroup Properties shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
First Industrial Realty Trust pays an annual dividend of $0.84 per share and has a dividend yield of 2.8%. EastGroup Properties pays an annual dividend of $2.48 per share and has a dividend yield of 2.9%. 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 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 has raised its dividend for 3 consecutive years and EastGroup Properties has raised its dividend for 5 consecutive years. EastGroup Properties is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
EastGroup Properties beats First Industrial Realty Trust on 11 of the 17 factors compared between the two stocks.
About First Industrial Realty Trust
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.
About EastGroup Properties
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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