Analyzing Prologis (AMB) and EastGroup Properties (EGP)

Prologis (NYSE: AMB) and EastGroup Properties (NYSE:EGP) are both financials companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, profitability, earnings, analyst recommendations, institutional ownership, dividends and valuation.

Valuation & Earnings

This table compares Prologis and EastGroup Properties’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Prologis N/A N/A N/A N/A N/A
EastGroup Properties $263.59 million 11.81 $161.56 million $2.37 38.46

EastGroup Properties has higher revenue and earnings than Prologis.

Dividends

EastGroup Properties pays an annual dividend of $2.48 per share and has a dividend yield of 2.7%. Prologis 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.

Profitability

This table compares Prologis and EastGroup Properties’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Prologis 37.59% 7.27% 3.85%
EastGroup Properties 30.20% 12.05% 4.38%

Insider & Institutional Ownership

98.0% 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.

Analyst Recommendations

This is a summary of current recommendations and price targets for Prologis and EastGroup Properties, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Prologis 0 0 0 0 N/A
EastGroup Properties 1 7 3 0 2.18

EastGroup Properties has a consensus price target of $82.22, indicating a potential downside of 9.80%.

Summary

EastGroup Properties beats Prologis on 8 of the 10 factors compared between the two stocks.

Prologis Company Profile

Prologis, Inc. is a real estate investment trust (REIT) company. The Company is engaged in logistics real estate business. The Company’s segments include Real Estate Operations and Strategic Capital. The Real estate operations segment consists of rental operations and development. The Company’s strategic capital segment includes asset management services, as well as services performed for unconsolidated co-investment ventures. Its strategic capital segment gives the Company access to third-party capital, both private and public. As of December 31, 2016, the Company owned or had investments in, on an owned basis or through co-investment ventures, properties and development projects across 676 million square feet (63 million square meters) in 20 countries spanning four continents.

EastGroup Properties Company Profile

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.

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