Head-To-Head Comparison: SL Green Realty (NYSE:SLG) vs. EastGroup Properties (NYSE:EGP)

EastGroup Properties (NYSE:EGP) and SL Green Realty (NYSE:SLG) are both mid-cap finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, valuation, analyst recommendations, risk, institutional ownership, profitability and earnings.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
EastGroup Properties	34.85%	7.29%	4.67%
SL Green Realty	-2.21%	-1.19%	-0.43%

Earnings & Valuation

This table compares EastGroup Properties and SL Green Realty”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
EastGroup Properties	$640.23 million	13.47	$227.75 million	$4.63	34.93
SL Green Realty	$886.27 million	4.46	$30.65 million	($0.54)	-102.66

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

Dividends

EastGroup Properties pays an annual dividend of $5.60 per share and has a dividend yield of 3.5%. SL Green Realty pays an annual dividend of $3.09 per share and has a dividend yield of 5.6%. EastGroup Properties pays out 121.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. SL Green Realty pays out -572.2% of its earnings in the form of a dividend. EastGroup Properties has raised its dividend for 4 consecutive years and SL Green Realty has raised its dividend for 1 consecutive years. SL Green Realty is clearly the better dividend stock, given its higher yield and lower payout ratio.

Institutional and Insider Ownership

92.1% of EastGroup Properties shares are owned by institutional investors. Comparatively, 90.0% of SL Green Realty shares are owned by institutional investors. 1.0% of EastGroup Properties shares are owned by company insiders. Comparatively, 5.0% of SL Green Realty shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Risk & Volatility

EastGroup Properties has a beta of 0.98, indicating that its stock price is 2% less volatile than the S&P 500. Comparatively, SL Green Realty has a beta of 1.69, indicating that its stock price is 69% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for EastGroup Properties and SL Green Realty, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
EastGroup Properties	0	6	7	1	2.64
SL Green Realty	0	11	4	0	2.27

EastGroup Properties presently has a consensus target price of $189.3077, suggesting a potential upside of 17.07%. SL Green Realty has a consensus target price of $67.2857, suggesting a potential upside of 21.38%. Given SL Green Realty’s higher possible upside, analysts plainly believe SL Green Realty is more favorable than EastGroup Properties.

Summary

EastGroup Properties beats SL Green Realty on 12 of the 18 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 SL Green Realty

3SL Green Realty Corp., Manhattan’s largest office landlord, is a fully integrated real estate investment trust, or REIT, that is focused primarily on acquiring, managing and maximizing value of Manhattan commercial properties. As of June 30, 2022, SL Green held interests in 64 buildings totaling 34.4 million square feet. This included ownership interests in 26.3 million square feet of Manhattan buildings and 7.2 million square feet securing debt and preferred equity investments.