EastGroup Properties Inc (EGP)vsSunstone Hotel Investors Inc (SHO)
EGP
EastGroup Properties Inc
$198.21
-0.11%
REAL ESTATE · Cap: $10.47B
SHO
Sunstone Hotel Investors Inc
$11.48
-0.17%
REAL ESTATE · Cap: $2.02B
Smart Verdict
WallStSmart Research — data-driven comparison
Sunstone Hotel Investors Inc generates 34% more annual revenue ($985.77M vs $735.38M). EGP leads profitability with a 39.8% profit margin vs 3.8%. SHO appears more attractively valued with a PEG of 3.00. EGP earns a higher WallStSmart Score of 61/100 (C+).
EGP
Buy61
out of 100
Grade: C+
SHO
Buy55
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-5.4%
Fair Value
$180.11
Current Price
$198.21
$18.10 premium
Margin of Safety
+35.1%
Fair Value
$14.30
Current Price
$11.48
$2.82 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Keeps 40 of every $100 in revenue as profit
Strong operational efficiency at 40.2%
Earnings expanding 55.3% YoY
Reasonable price relative to book value
Reasonable price relative to book value
Earnings expanding 1170.0% YoY
Areas to Watch
Premium valuation, high expectations priced in
Expensive relative to growth rate
Distress zone — elevated risk
ROE of 2.0% — below average capital efficiency
3.8% margin — thin
Weak financial health signals
Expensive relative to growth rate
Comparative Analysis Report
WallStSmart ResearchBull Case : EGP
The strongest argument for EGP centers on Profit Margin, Operating Margin, EPS Growth. Profitability is solid with margins at 39.8% and operating margin at 40.2%.
Bull Case : SHO
The strongest argument for SHO centers on Price/Book, EPS Growth. Revenue growth of 11.0% demonstrates continued momentum.
Bear Case : EGP
The primary concerns for EGP are P/E Ratio, PEG Ratio, Altman Z-Score.
Bear Case : SHO
The primary concerns for SHO are Return on Equity, Profit Margin, Piotroski F-Score. A P/E of 98.4x leaves little room for execution misses. Thin 3.8% margins leave little buffer for downturns.
Key Dynamics to Monitor
EGP profiles as a mature stock while SHO is a value play — different risk/reward profiles.
EGP carries more volatility with a beta of 1.07 — expect wider price swings.
SHO is growing revenue faster at 11.0% — sustainability is the question.
EGP generates stronger free cash flow (127M), providing more financial flexibility.
Bottom Line
EGP scores higher overall (61/100 vs 55/100), backed by strong 39.8% margins. SHO offers better value entry with a 35.1% margin of safety. Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
EastGroup Properties Inc
REAL ESTATE · REIT - INDUSTRIAL · USA
EastGroup Properties, Inc. (NYSE: EGP), an S&P MidCap 400 company, is a self-managed capital real estate investment trust focused on the development, acquisition and operation of industrial properties in Sunbelt's major markets in the United States. with an emphasis on the states of Florida, Texas, Arizona, California and North Carolina.
Sunstone Hotel Investors Inc
REAL ESTATE · REIT - HOTEL & MOTEL · USA
Sunstone Hotel Investors, Inc. is a lodging real estate investment trust (REIT) that, as of the date of this release, has interests in 19 hotels with 9,997 rooms.
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