Financial Analysis: EastGroup Properties (NYSE:EGP) and Empire State Realty Trust (NYSE:ESRT)
by Amy Steele · The Cerbat GemEmpire State Realty Trust (NYSE:ESRT – Get Free Report) and EastGroup Properties (NYSE:EGP – Get Free Report) are both finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, risk, dividends, institutional ownership, analyst recommendations, profitability and earnings.
Dividends
Empire State Realty Trust pays an annual dividend of $0.14 per share and has a dividend yield of 2.1%. EastGroup Properties pays an annual dividend of $6.20 per share and has a dividend yield of 3.5%. Empire State Realty Trust pays out 66.7% of its earnings in the form of a dividend. 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. EastGroup Properties has increased 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.
Analyst Recommendations
This is a breakdown of current recommendations and price targets for Empire State Realty Trust and EastGroup Properties, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Empire State Realty Trust | 1 | 2 | 1 | 0 | 2.00 |
| EastGroup Properties | 0 | 5 | 9 | 1 | 2.73 |
Empire State Realty Trust currently has a consensus price target of $8.40, suggesting a potential upside of 26.93%. EastGroup Properties has a consensus price target of $195.19, suggesting a potential upside of 9.88%. Given Empire State Realty Trust’s higher probable upside, research analysts plainly believe Empire State Realty Trust is more favorable than EastGroup Properties.
Profitability
This table compares Empire State Realty Trust and EastGroup Properties’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Empire State Realty Trust | 4.96% | 2.13% | 0.91% |
| EastGroup Properties | 35.58% | 7.28% | 4.76% |
Volatility & Risk
Empire State Realty Trust has a beta of 1.34, indicating that its share price is 34% more volatile than the S&P 500. Comparatively, EastGroup Properties has a beta of 1.11, indicating that its share price is 11% more volatile than the S&P 500.
Valuation and Earnings
This table compares Empire State Realty Trust and EastGroup Properties”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Empire State Realty Trust | $767.92 million | 1.47 | $51.64 million | $0.21 | 31.51 |
| EastGroup Properties | $640.23 million | 14.80 | $227.75 million | $4.76 | 37.32 |
EastGroup Properties has lower revenue, but higher earnings than Empire State Realty Trust. Empire State Realty 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.
Institutional & Insider Ownership
67.1% of Empire State Realty Trust shares are owned by institutional investors. Comparatively, 92.1% of EastGroup Properties shares are owned by institutional investors. 14.6% of Empire State Realty Trust shares are owned by company insiders. Comparatively, 1.0% of EastGroup Properties shares are owned by company 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 Empire State Realty Trust on 13 of the 18 factors compared between the two stocks.
About Empire State Realty Trust
Empire State Realty Trust, Inc. (NYSE: ESRT) is a NYC-focused REIT that owns and operates a portfolio of modernized, amenitized, and well-located office, retail, and multifamily assets. The company is the recognized leader in energy efficiency and indoor environmental quality. ESRT’s flagship Empire State Building – the “World’s Most Famous Building” – includes its Observatory, Tripadvisor’s 2023 Travelers’ Choice Awards: Best of the Best the #1 attraction in the US for two consecutive years. As of September 30, 2023, ESRT’s portfolio is comprised of approximately 8.6 million rentable square feet of office space, 0.7 million rentable square feet of retail space and 727 residential units across three multifamily properties.
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.