Analyzing HG (OTCMKTS:STLY) and EastGroup Properties (NYSE:EGP)

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

Volatility and Risk

EastGroup Properties has a beta of 1.05, indicating that its stock price is 5% more volatile than the S&P 500. Comparatively, HG has a beta of 0.21, indicating that its stock price is 79% less volatile than the S&P 500.

Earnings & Valuation

This table compares EastGroup Properties and HG”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
EastGroup Properties	$721.34 million	15.31	$257.40 million	$5.50	37.35
HG	$14.74 million	1.18	$1.53 million	$0.54	6.37

EastGroup Properties has higher revenue and earnings than HG. HG 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 HG’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
EastGroup Properties	39.69%	8.37%	5.45%
HG	14.64%	5.56%	4.34%

Insider and Institutional Ownership

92.1% of EastGroup Properties shares are held by institutional investors. Comparatively, 1.7% of HG shares are held by institutional investors. 1.0% of EastGroup Properties shares are held by company insiders. Comparatively, 75.0% of HG shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and recommmendations for EastGroup Properties and HG, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
EastGroup Properties	0	5	10	0	2.67
HG	0	0	0	0	0.00

EastGroup Properties currently has a consensus price target of $205.33, suggesting a potential downside of 0.05%. Given EastGroup Properties’ stronger consensus rating and higher probable upside, equities research analysts plainly believe EastGroup Properties is more favorable than HG.

Summary

EastGroup Properties beats HG on 13 of the 14 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 HG

HG Holdings, Inc. engages in the title insurance and real estate businesses in the United States. It operates through four segments: Title Insurance Services, Reinsurance, Management Services, and Real Estate. The company provides title insurance, closing and/or escrow, and similar or related services in connection with residential and commercial real estate transactions. It also owns and operates a portfolio of single-tenant properties leased for the occupancy by U.S. government tenant agencies and sub-agencies, such as the Federal Bureau of Investigation, the Department of Veterans affairs, the Drug Enforcement Administration, Immigration & Customs Enforcement, the Social Security Administration, and the Department of Transportation. In addition, the company provides excess-of-loss reinsurance coverage related to catastrophic weather risk in Texas; and management advisory services, such as formation, operational, and restructuring services. The company was formerly known as Stanley Furniture Company, Inc. and changed its name to HG Holdings, Inc. in March 2018. HG Holdings, Inc. was incorporated in 1984 and is headquartered in Charlotte, North Carolina.