EastGroup Properties (NYSE:EGP – Get Rating) and Elme Communities (NYSE:ELME – Get Rating) are both finance companies, but which is the superior stock? We will compare the two companies based on the strength of their valuation, analyst recommendations, earnings, risk, dividends, profitability and institutional ownership.
Valuation and Earnings
This table compares EastGroup Properties and Elme Communities' revenue, earnings per share (EPS) and valuation.
Get EastGroup Properties alerts:| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| EastGroup Properties | $409.48 million | 17.13 | $157.56 million | $5.25 | 30.66 |
| Elme Communities | $169.15 million | 9.53 | $16.38 million | ($0.39) | -47.23 |
EastGroup Properties has higher revenue and earnings than Elme Communities. Elme Communities is trading at a lower price-to-earnings ratio than EastGroup Properties, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
EastGroup Properties has a beta of 0.88, meaning that its stock price is 12% less volatile than the S&P 500. Comparatively, Elme Communities has a beta of 0.9, meaning that its stock price is 10% less volatile than the S&P 500.Analyst Recommendations
This is a summary of current recommendations and price targets for EastGroup Properties and Elme Communities, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| EastGroup Properties | 0 | 5 | 4 | 0 | 2.44 |
| Elme Communities | 0 | 3 | 0 | 0 | 2.00 |
EastGroup Properties presently has a consensus price target of $167.70, indicating a potential upside of 4.18%. Elme Communities has a consensus price target of $18.50, indicating a potential upside of 0.43%. Given EastGroup Properties' stronger consensus rating and higher probable upside, analysts plainly believe EastGroup Properties is more favorable than Elme Communities.
Insider and Institutional Ownership
89.5% of EastGroup Properties shares are owned by institutional investors. Comparatively, 90.5% of Elme Communities shares are owned by institutional investors. 1.5% of EastGroup Properties shares are owned by insiders. Comparatively, 1.0% of Elme Communities 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.
Dividends
EastGroup Properties pays an annual dividend of $5.00 per share and has a dividend yield of 3.1%. Elme Communities pays an annual dividend of $0.68 per share and has a dividend yield of 3.7%. EastGroup Properties pays out 95.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Elme Communities pays out -174.4% of its earnings in the form of a dividend. EastGroup Properties has increased its dividend for 11 consecutive years. Elme Communities is clearly the better dividend stock, given its higher yield and lower payout ratio.
Profitability
This table compares EastGroup Properties and Elme Communities' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| EastGroup Properties | 47.23% | 12.15% | 6.11% |
| Elme Communities | -17.19% | -2.61% | -1.80% |
Summary
EastGroup Properties beats Elme Communities on 13 of the 17 factors compared between the two stocks.
About EastGroup Properties
(Get Rating)
EastGroup Properties, Inc. (NYSE: EGP), an S&P MidCap 400 company, is a self-administered equity real estate investment trust focused on the development, acquisition and operation of industrial properties in major Sunbelt markets throughout the United States with an emphasis in the states of Florida, Texas, Arizona, California and North Carolina. The Company's goal is to maximize shareholder value by being a leading provider in its markets of functional, flexible and quality business distribution space for location sensitive customers (primarily in the 15,000 to 70,000 square foot range). The Company's strategy for growth is based on ownership of premier distribution facilities generally clustered near major transportation features in supply-constrained submarkets. EastGroup's portfolio, including development projects and value-add acquisitions in lease-up and under construction, currently includes approximately 45.8 million square feet.
About Elme Communities
(Get Rating)
Elme Communities owns and operates uniquely positioned real estate assets in the Washington Metro area. Backed by decades of experience, expertise and ambition, we create value by transforming insights into strategy and strategy into action. As of October 29, 2020, the Company's portfolio of 45 properties includes approximately 3.7 million square feet of commercial space and 6,863 multifamily apartment units. These 45 properties consist of 22 multifamily properties,15 office properties, and 8 retail centers. Our shares trade on the NYSE. With a track record of driving returns and delivering satisfaction, we are a trusted authority in one of the nation's most competitive real estate markets.
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