EastGroup Properties (NYSE:EGP – Get Free Report) and Mid-America Apartment Communities (NYSE:MAA – Get Free Report) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, earnings, dividends, valuation, profitability and institutional ownership.
Insider & Institutional Ownership
92.1% of EastGroup Properties shares are owned by institutional investors. Comparatively, 93.6% of Mid-America Apartment Communities shares are owned by institutional investors. 1.0% of EastGroup Properties shares are owned by company insiders. Comparatively, 1.3% of Mid-America Apartment Communities shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Earnings & Valuation
This table compares EastGroup Properties and Mid-America Apartment Communities’ revenue, earnings per share and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
EastGroup Properties | $608.99 million | 14.37 | $200.49 million | $4.61 | 39.43 |
Mid-America Apartment Communities | $2.17 billion | 8.22 | $552.81 million | $4.77 | 32.09 |
Analyst Recommendations
This is a breakdown of recent recommendations and price targets for EastGroup Properties and Mid-America Apartment Communities, as reported by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
EastGroup Properties | 0 | 7 | 6 | 0 | 2.46 |
Mid-America Apartment Communities | 2 | 9 | 6 | 0 | 2.24 |
EastGroup Properties currently has a consensus price target of $186.85, suggesting a potential upside of 2.80%. Mid-America Apartment Communities has a consensus price target of $145.56, suggesting a potential downside of 4.91%. Given EastGroup Properties’ stronger consensus rating and higher probable upside, equities research analysts clearly believe EastGroup Properties is more favorable than Mid-America Apartment Communities.
Volatility & Risk
EastGroup Properties has a beta of 0.98, meaning that its stock price is 2% less volatile than the S&P 500. Comparatively, Mid-America Apartment Communities has a beta of 0.85, meaning that its stock price is 15% less volatile than the S&P 500.
Dividends
EastGroup Properties pays an annual dividend of $5.08 per share and has a dividend yield of 2.8%. Mid-America Apartment Communities pays an annual dividend of $5.88 per share and has a dividend yield of 3.8%. EastGroup Properties pays out 110.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Mid-America Apartment Communities pays out 123.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Mid-America Apartment Communities has increased its dividend for 15 consecutive years. Mid-America Apartment Communities is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Profitability
This table compares EastGroup Properties and Mid-America Apartment Communities’ net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
EastGroup Properties | 37.16% | 8.69% | 4.98% |
Mid-America Apartment Communities | 23.73% | 8.25% | 4.50% |
Summary
EastGroup Properties beats Mid-America Apartment Communities on 9 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 Mid-America Apartment Communities
MAA, an S&P 500 company, is a real estate investment trust (REIT) focused on delivering full-cycle and superior investment performance for shareholders through the ownership, management, acquisition, development and redevelopment of quality apartment communities primarily in the Southeast, Southwest and Mid-Atlantic regions of the United States. As of December 31, 2023, MAA had ownership interest in 102,662 apartment units, including communities currently in development, across 16 states and the District of Columbia.
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