EastGroup Properties (NYSE:EGP) & Acadia Realty Trust (NYSE:AKR) Head to Head Comparison

EastGroup Properties (NYSE:EGPGet Rating) and Acadia Realty Trust (NYSE:AKRGet Rating) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their dividends, risk, earnings, institutional ownership, profitability, valuation and analyst recommendations.

Volatility and Risk

EastGroup Properties has a beta of 0.87, indicating that its share price is 13% less volatile than the S&P 500. Comparatively, Acadia Realty Trust has a beta of 1.36, indicating that its share price is 36% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and recommmendations for EastGroup Properties and Acadia Realty Trust, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
EastGroup Properties 0 6 3 0 2.33
Acadia Realty Trust 0 1 4 0 2.80

EastGroup Properties currently has a consensus price target of $189.80, indicating a potential upside of 24.88%. Acadia Realty Trust has a consensus price target of $19.83, indicating a potential upside of 39.67%. Given Acadia Realty Trust’s stronger consensus rating and higher probable upside, analysts clearly believe Acadia Realty Trust is more favorable than EastGroup Properties.

Profitability

This table compares EastGroup Properties and Acadia Realty Trust’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
EastGroup Properties 47.89% 12.77% 6.34%
Acadia Realty Trust 9.81% 1.26% 0.65%

Dividends

EastGroup Properties pays an annual dividend of $4.40 per share and has a dividend yield of 2.9%. Acadia Realty Trust pays an annual dividend of $0.72 per share and has a dividend yield of 5.1%. EastGroup Properties pays out 85.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Acadia Realty Trust pays out 211.8% 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 has increased its dividend for 10 consecutive years and Acadia Realty Trust has increased its dividend for 1 consecutive years.

Institutional and Insider Ownership

89.7% of EastGroup Properties shares are held by institutional investors. 1.5% of EastGroup Properties shares are held by company insiders. Comparatively, 2.8% of Acadia Realty Trust shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares EastGroup Properties and Acadia Realty Trust’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
EastGroup Properties $409.48 million 16.17 $157.56 million $5.14 29.57
Acadia Realty Trust $292.50 million 4.61 $23.55 million $0.34 41.76

EastGroup Properties has higher revenue and earnings than Acadia Realty Trust. EastGroup Properties is trading at a lower price-to-earnings ratio than Acadia Realty Trust, indicating that it is currently the more affordable of the two stocks.

Summary

EastGroup Properties beats Acadia Realty Trust on 10 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 Acadia Realty Trust

(Get Rating)

Acadia Realty Trust is an equity real estate investment trust focused on delivering long-term, profitable growth via its dual – Core Portfolio and Fund – operating platforms and its disciplined, location-driven investment strategy. Acadia Realty Trust is accomplishing this goal by building a best-in-class core real estate portfolio with meaningful concentrations of assets in the nation's most dynamic corridors; making profitable opportunistic and value-add investments through its series of discretionary, institutional funds; and maintaining a strong balance sheet.

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