Critical Survey: Horizon Group Properties (OTCMKTS:HGPI) vs. EastGroup Properties (NYSE:EGP)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
EastGroup Properties	37.19%	8.56%	5.01%
Horizon Group Properties	N/A	N/A	N/A

Institutional & Insider Ownership

92.1% of EastGroup Properties shares are held by institutional investors. 1.0% of EastGroup Properties shares are held by insiders. Comparatively, 15.9% of Horizon Group Properties shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Risk and Volatility

EastGroup Properties has a beta of 0.99, meaning that its share price is 1% less volatile than the S&P 500. Comparatively, Horizon Group Properties has a beta of 0.13, meaning that its share price is 87% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for EastGroup Properties and Horizon Group Properties, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
EastGroup Properties	0	6	8	0	2.57
Horizon Group Properties	0	0	0	0	N/A

EastGroup Properties currently has a consensus price target of $192.57, suggesting a potential upside of 12.42%. Given EastGroup Properties’ higher probable upside, equities research analysts clearly believe EastGroup Properties is more favorable than Horizon Group Properties.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
EastGroup Properties	$570.59 million	14.86	$200.49 million	$4.84	35.39
Horizon Group Properties	N/A	N/A	N/A	N/A	N/A

EastGroup Properties has higher revenue and earnings than Horizon Group Properties.

Summary

EastGroup Properties beats Horizon Group Properties on 8 of the 9 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 Horizon Group Properties

Based in Chicago, Illinois, Horizon Group Properties, Inc. has 12 operating factory outlet centers and one power center in 10 states totaling more than 2.6 million square feet.