HG (OTCMKTS:STLY) & EastGroup Properties (NYSE:EGP) Financial Survey

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

Valuation and Earnings

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

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

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.

Risk & Volatility

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

Insider and Institutional Ownership

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

Profitability

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

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

Analyst Recommendations

This is a summary of current ratings and price targets for HG and EastGroup Properties, as reported by MarketBeat.

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

EastGroup Properties has a consensus price target of $205.33, indicating a potential downside of 0.05%. Given EastGroup Properties’ stronger consensus rating and higher possible upside, analysts clearly 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 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.

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.