EastGroup Properties (NYSE:EGP – Get Free Report) and Pebblebrook Hotel Trust (NYSE:PEB – Get Free Report) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, profitability, analyst recommendations, dividends, risk, valuation and institutional ownership.
Institutional and Insider Ownership
92.1% of EastGroup Properties shares are held by institutional investors. 1.0% of EastGroup Properties shares are held by company insiders. Comparatively, 3.1% of Pebblebrook Hotel Trust shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Analyst Ratings
This is a summary of recent ratings and target prices for EastGroup Properties and Pebblebrook Hotel Trust, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| EastGroup Properties | 0 | 5 | 9 | 1 | 2.73 |
| Pebblebrook Hotel Trust | 6 | 5 | 1 | 1 | 1.77 |
Risk & Volatility
EastGroup Properties has a beta of 1.11, indicating that its stock price is 11% more volatile than the S&P 500. Comparatively, Pebblebrook Hotel Trust has a beta of 1.54, indicating that its stock price is 54% more volatile than the S&P 500.
Dividends
EastGroup Properties pays an annual dividend of $6.20 per share and has a dividend yield of 3.5%. Pebblebrook Hotel Trust pays an annual dividend of $0.04 per share and has a dividend yield of 0.3%. EastGroup Properties pays out 130.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Pebblebrook Hotel Trust pays out -3.4% of its earnings in the form of a dividend. EastGroup Properties has raised its dividend for 4 consecutive years. EastGroup Properties is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Valuation and Earnings
This table compares EastGroup Properties and Pebblebrook Hotel Trust”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| EastGroup Properties | $640.23 million | 14.97 | $227.75 million | $4.76 | 37.75 |
| Pebblebrook Hotel Trust | $1.45 billion | 0.90 | -$4.24 million | ($1.19) | -9.63 |
EastGroup Properties has higher earnings, but lower revenue than Pebblebrook Hotel Trust. Pebblebrook Hotel 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.
Profitability
This table compares EastGroup Properties and Pebblebrook Hotel Trust’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| EastGroup Properties | 35.58% | 7.28% | 4.76% |
| Pebblebrook Hotel Trust | -7.45% | -4.02% | -1.93% |
Summary
EastGroup Properties beats Pebblebrook Hotel Trust on 13 of the 17 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 Pebblebrook Hotel Trust
Pebblebrook Hotel Trust (NYSE: PEB) is a publicly traded real estate investment trust ("REIT") and the largest owner of urban and resort lifestyle hotels and resorts in the United States. The Company owns 47 hotels and resorts, totaling approximately 12,200 guest rooms across 13 urban and resort markets.
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