Pebblebrook Hotel Trust (NYSE:PEB) vs. EastGroup Properties (NYSE:EGP) Financial Comparison

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

Volatility and Risk

EastGroup Properties has a beta of 1.11, suggesting that its stock price is 11% more volatile than the S&P 500. Comparatively, Pebblebrook Hotel Trust has a beta of 1.54, suggesting that its stock price is 54% more volatile than the S&P 500.

Profitability

This table compares EastGroup Properties and Pebblebrook Hotel Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
EastGroup Properties	35.68%	7.43%	4.85%
Pebblebrook Hotel Trust	-7.45%	-4.02%	-1.93%

Dividends

EastGroup Properties pays an annual dividend of $6.20 per share and has a dividend yield of 3.3%. Pebblebrook Hotel Trust pays an annual dividend of $0.04 per share and has a dividend yield of 0.3%. EastGroup Properties pays out 127.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Pebblebrook Hotel Trust pays out -3.4% of its earnings in the form of a dividend. 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 recent recommendations for EastGroup Properties and Pebblebrook Hotel Trust, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
EastGroup Properties	0	5	9	1	2.73
Pebblebrook Hotel Trust	6	5	1	1	1.77

EastGroup Properties currently has a consensus price target of $195.53, suggesting a potential upside of 2.83%. Pebblebrook Hotel Trust has a consensus price target of $12.08, suggesting a potential downside of 2.48%. Given EastGroup Properties’ stronger consensus rating and higher possible upside, equities research analysts clearly believe EastGroup Properties is more favorable than Pebblebrook Hotel Trust.

Institutional and Insider Ownership

92.1% of EastGroup Properties shares are held by institutional investors. 1.0% of EastGroup Properties shares are held by insiders. Comparatively, 3.1% of Pebblebrook Hotel Trust shares are held by 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 Pebblebrook Hotel Trust”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
EastGroup Properties	$721.34 million	14.06	$227.75 million	$4.87	39.04
Pebblebrook Hotel Trust	$1.46 billion	0.96	-$4.24 million	($1.19)	-10.41

EastGroup Properties has higher earnings, but lower revenue than Pebblebrook Hotel Trust. Pebblebrook Hotel 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.

Summary

EastGroup Properties beats Pebblebrook Hotel Trust on 13 of the 17 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 Pebblebrook Hotel Trust

Pebblebrook Hotel Trust (NYSE: PEB) is a publicly traded real estate investment trust ("REIT") and the largest owner of urban and resort lifestyle hotels and resorts in the United States. The Company owns 47 hotels and resorts, totaling approximately 12,200 guest rooms across 13 urban and resort markets.