WallStSmart

EastGroup Properties Inc (EGP)vsSunstone Hotel Investors Inc (SHO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Sunstone Hotel Investors Inc generates 31% more annual revenue ($960.13M vs $735.38M). EGP leads profitability with a 39.8% profit margin vs 2.6%. SHO appears more attractively valued with a PEG of 3.00. EGP earns a higher WallStSmart Score of 63/100 (C+).

EGP

Buy

63

out of 100

Grade: C+

Growth: 8.0Profit: 8.0Value: 4.0Quality: 5.0

SHO

Hold

44

out of 100

Grade: D

Growth: 4.0Profit: 4.5Value: 4.7Quality: 6.0
Piotroski: 3/9Altman Z: 1.45
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

EGPUndervalued (+2.3%)

Margin of Safety

+2.3%

Fair Value

$194.42

Current Price

$201.20

$6.78 discount

UndervaluedFair: $194.42Overvalued
SHOUndervalued (+51.3%)

Margin of Safety

+51.3%

Fair Value

$19.04

Current Price

$9.83

$9.21 discount

UndervaluedFair: $19.04Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

EGP3 strengths · Avg: 10.0/10
Profit MarginProfitability
39.8%10/10

Keeps 40 of every $100 in revenue as profit

Operating MarginProfitability
40.2%10/10

Strong operational efficiency at 40.2%

EPS GrowthGrowth
55.3%10/10

Earnings expanding 55.3% YoY

SHO1 strengths · Avg: 10.0/10
Price/BookValuation
1.1x10/10

Reasonable price relative to book value

Areas to Watch

EGP2 concerns · Avg: 3.0/10
P/E RatioValuation
36.5x4/10

Premium valuation, high expectations priced in

PEG RatioValuation
8.422/10

Expensive relative to growth rate

SHO4 concerns · Avg: 3.0/10
Market CapQuality
$1.86B3/10

Smaller company, higher risk/reward

Return on EquityProfitability
1.2%3/10

ROE of 1.2% — below average capital efficiency

Profit MarginProfitability
2.6%3/10

2.6% margin — thin

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Comparative Analysis Report

WallStSmart Research

Bull 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. Revenue growth of 10.3% demonstrates continued momentum.

Bear Case : EGP

The primary concerns for EGP are P/E Ratio, PEG Ratio.

Bear Case : SHO

The primary concerns for SHO are Market Cap, Return on Equity, Profit Margin. A P/E of 245.8x leaves little room for execution misses. Thin 2.6% 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 1.11 — expect wider price swings.

SHO is growing revenue faster at 10.3% — sustainability is the question.

EGP generates stronger free cash flow (127M), providing more financial flexibility.

Bottom Line

EGP scores higher overall (63/100 vs 44/100), backed by strong 39.8% margins. SHO offers better value entry with a 51.3% margin of safety. Both earn "Buy" and "Hold" 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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