EastGroup Properties (NYSE: EGP) and Rexford Industrial Realty (NASDAQ:REXR) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, valuation, dividends, risk, profitability, analyst recommendations and institutional ownership.
Analyst Ratings
This is a summary of recent recommendations and price targets for EastGroup Properties and Rexford Industrial Realty, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| EastGroup Properties | 1 | 7 | 1 | 0 | 2.00 |
| Rexford Industrial Realty | 0 | 2 | 3 | 0 | 2.60 |
EastGroup Properties currently has a consensus price target of $77.14, indicating a potential downside of 8.46%. Rexford Industrial Realty has a consensus price target of $28.17, indicating a potential upside of 2.28%. Given Rexford Industrial Realty’s stronger consensus rating and higher possible upside, analysts clearly believe Rexford Industrial Realty is more favorable than EastGroup Properties.
Profitability
This table compares EastGroup Properties and Rexford Industrial Realty’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| EastGroup Properties | 30.20% | 12.05% | 4.38% |
| Rexford Industrial Realty | 16.18% | 1.96% | 1.51% |
Dividends
EastGroup Properties pays an annual dividend of $2.48 per share and has a dividend yield of 2.9%. Rexford Industrial Realty does not pay a dividend. EastGroup Properties pays out 104.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. EastGroup Properties has increased its dividend for 5 consecutive years.
Insider & Institutional Ownership
94.8% of EastGroup Properties shares are owned by institutional investors. 2.9% of EastGroup Properties shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Earnings and Valuation
This table compares EastGroup Properties and Rexford Industrial Realty’s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | EBITDA | Earnings Per Share | Price/Earnings Ratio | |
| EastGroup Properties | $263.59 million | 10.92 | $161.56 million | $2.37 | 35.56 |
| Rexford Industrial Realty | $139.65 million | 13.96 | $82.43 million | N/A | N/A |
EastGroup Properties has higher revenue and earnings than Rexford Industrial Realty.
Summary
EastGroup Properties beats Rexford Industrial Realty on 9 of the 15 factors compared between the two stocks.
About EastGroup Properties
EastGroup Properties, Inc. is an equity real estate investment trust (REIT). The Company is focused on the development, acquisition and operation of industrial properties in various Sunbelt markets across the United States with an emphasis in the states of Florida, Texas, Arizona, California and North Carolina. The Company holds its properties as long-term investments but may determine to sell certain properties that no longer meet its investment criteria. The Company may provide financing in connection with such sales of property if market conditions require. In addition, the Company may provide financing to a partner or co-owner in connection with an acquisition of real estate in certain situations. The Company owned 327 industrial properties and one office building as of December 31, 2016. The Company’s properties in North Carolina include Lindbergh Business Park, Nations Ford Business Park and Airport Commerce Center in Charlotte area.
About Rexford Industrial Realty
Rexford Industrial Realty, Inc. is a self-administered and self-managed full-service real estate investment trust (REIT). The Company is focused on owning, operating and acquiring industrial properties in Southern California infill markets. Rexford Industrial Realty, L.P. is the operating partnership of the Company. Through its controlling interest in Operating Partnership and its subsidiaries, the Company owns, manages, leases, acquires and develops industrial real estate located in Southern California infill markets, and from time to time, acquires or provides mortgage debt secured by industrial property. As of July 19, 2017, the Company’s consolidated portfolio consisted of 142 properties with approximately 17.7 million rentable square feet. In addition, the Company managed an additional 19 properties with approximately 1.2 million rentable square feet.
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