Contrasting EastGroup Properties (NYSE:EGP) & Whitestone REIT (NYSE:WSR)

EastGroup Properties (NYSE:EGP) and Whitestone REIT (NYSE:WSR) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their dividends, earnings, profitability, institutional ownership, analyst recommendations, valuation and risk.

Dividends

EastGroup Properties pays an annual dividend of $5.60 per share and has a dividend yield of 3.3%. Whitestone REIT pays an annual dividend of $0.50 per share and has a dividend yield of 3.5%. EastGroup Properties pays out 115.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Whitestone REIT pays out 122.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Profitability

This table compares EastGroup Properties and Whitestone REIT’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
EastGroup Properties	37.19%	8.56%	5.01%
Whitestone REIT	13.97%	4.98%	1.88%

Earnings & Valuation

This table compares EastGroup Properties and Whitestone REIT”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
EastGroup Properties	$570.59 million	14.92	$200.49 million	$4.84	35.54
Whitestone REIT	$146.97 million	4.94	$19.18 million	$0.41	34.98

EastGroup Properties has higher revenue and earnings than Whitestone REIT. Whitestone REIT 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 & Volatility

EastGroup Properties has a beta of 1, suggesting that its share price has a similar volatility profile to the S&P 500.Comparatively, Whitestone REIT has a beta of 1.26, suggesting that its share price is 26% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations and price targets for EastGroup Properties and Whitestone REIT, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
EastGroup Properties	0	6	8	0	2.57
Whitestone REIT	0	1	3	0	2.75

EastGroup Properties presently has a consensus target price of $191.21, indicating a potential upside of 11.18%. Whitestone REIT has a consensus target price of $15.00, indicating a potential upside of 4.60%. Given EastGroup Properties’ higher possible upside, analysts clearly believe EastGroup Properties is more favorable than Whitestone REIT.

Insider & Institutional Ownership

92.1% of EastGroup Properties shares are owned by institutional investors. Comparatively, 69.5% of Whitestone REIT shares are owned by institutional investors. 1.0% of EastGroup Properties shares are owned by insiders. Comparatively, 5.5% of Whitestone REIT shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

EastGroup Properties beats Whitestone REIT on 12 of the 16 factors compared between the two stocks.

About EastGroup Properties

EastGroup Properties, Inc. (NYSE: EGP), a member of the S&P Mid-Cap 400 and Russell 1000 Indexes, 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 20,000 to 100,000 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. The Company's portfolio, including development projects and value-add acquisitions in lease-up and under construction, currently includes approximately 59 million square feet.

About Whitestone REIT

Whitestone REIT (NYSE: WSR) is a community-centered real estate investment trust (REIT) that acquires, owns, operates, and develops open-air, retail centers located in some of the fastest growing markets in the country: Phoenix, Austin, Dallas-Fort Worth, Houston and San Antonio. Our centers are convenience focused: merchandised with a mix of service-oriented tenants providing food (restaurants and grocers), self-care (health and fitness), services (financial and logistics), education and entertainment to the surrounding communities. The Company believes its strong community connections and deep tenant relationships are key to the success of its current centers and its acquisition strategy.