EastGroup Properties (NYSE:EGP – Get Free Report) and Clipper Realty (NYSE:CLPR – Get Free Report) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, institutional ownership, risk, dividends, valuation and earnings.
Dividends
EastGroup Properties pays an annual dividend of $5.08 per share and has a dividend yield of 3.3%. Clipper Realty pays an annual dividend of $0.38 per share and has a dividend yield of 9.2%. EastGroup Properties pays out 110.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Clipper Realty pays out -84.4% of its earnings in the form of a dividend. EastGroup Properties has raised its dividend for 3 consecutive years. Clipper Realty is clearly the better dividend stock, given its higher yield and lower payout ratio.
Analyst Ratings
This is a summary of recent ratings and recommmendations for EastGroup Properties and Clipper Realty, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| EastGroup Properties | 0 | 9 | 5 | 0 | 2.36 |
| Clipper Realty | 1 | 1 | 1 | 0 | 2.00 |
Volatility & Risk
EastGroup Properties has a beta of 0.93, meaning that its share price is 7% less volatile than the S&P 500. Comparatively, Clipper Realty has a beta of 1.22, meaning that its share price is 22% more volatile than the S&P 500.
Earnings & Valuation
This table compares EastGroup Properties and Clipper Realty’s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| EastGroup Properties | $589.79 million | 12.69 | $200.49 million | $4.61 | 33.72 |
| Clipper Realty | $138.21 million | 0.48 | -$5.90 million | ($0.45) | -9.22 |
EastGroup Properties has higher revenue and earnings than Clipper Realty. Clipper Realty 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 Clipper Realty’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| EastGroup Properties | 36.36% | 8.70% | 4.86% |
| Clipper Realty | -4.27% | -35.33% | -0.48% |
Insider and Institutional Ownership
92.1% of EastGroup Properties shares are owned by institutional investors. Comparatively, 37.6% of Clipper Realty shares are owned by institutional investors. 1.0% of EastGroup Properties shares are owned by company insiders. Comparatively, 52.3% of Clipper Realty shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Summary
EastGroup Properties beats Clipper Realty on 12 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 Clipper Realty
Clipper Realty Inc. (NYSE: CLPR) is a self-administered and self-managed real estate company that acquires, owns, manages, operates, and repositions multifamily residential and commercial properties in the New York metropolitan area, with a portfolio in Manhattan and Brooklyn.
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