WallStSmart

EastGroup Properties Inc (EGP)vsService Properties Trust (SVC)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Service Properties Trust generates 147% more annual revenue ($1.81B vs $735.38M). EGP leads profitability with a 39.8% profit margin vs -11.2%. SVC appears more attractively valued with a PEG of 2.27. 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

SVC

Hold

37

out of 100

Grade: F

Growth: 2.0Profit: 3.5Value: 6.3Quality: 5.0
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
SVCUndervalued (+77.8%)

Margin of Safety

+77.8%

Fair Value

$10.36

Current Price

$1.55

$8.81 discount

UndervaluedFair: $10.36Overvalued

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

SVC1 strengths · Avg: 10.0/10
Price/BookValuation
0.4x10/10

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

SVC4 concerns · Avg: 2.8/10
PEG RatioValuation
2.274/10

Expensive relative to growth rate

Market CapQuality
$994.19M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
-27.0%2/10

ROE of -27.0% — below average capital efficiency

Revenue GrowthGrowth
-12.9%2/10

Revenue declined 12.9%

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 : SVC

The strongest argument for SVC centers on Price/Book.

Bear Case : EGP

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

Bear Case : SVC

The primary concerns for SVC are PEG Ratio, Market Cap, Return on Equity.

Key Dynamics to Monitor

EGP profiles as a mature stock while SVC is a turnaround play — different risk/reward profiles.

SVC carries more volatility with a beta of 1.58 — expect wider price swings.

EGP is growing revenue faster at 9.1% — sustainability is the question.

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

Bottom Line

EGP scores higher overall (63/100 vs 37/100), backed by strong 39.8% margins. SVC offers better value entry with a 77.8% 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.

Service Properties Trust

REAL ESTATE · REIT - HOTEL & MOTEL · USA

Service Properties Trust is a real estate investment trust, or REIT, that owns a diverse portfolio of hotel and net-leasing services and need-based retail properties in the United States and in Puerto Rico and Canada with 149 different brands across 23 industries. The company is headquartered in Newton, Massachusetts.

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