Critical Contrast: EPR Properties (NYSE:EPR) versus HG (OTCMKTS:STLY)

EPR Properties (NYSE:EPR) and HG (OTCMKTS:STLY) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, analyst recommendations, earnings, valuation, institutional ownership, dividends and profitability.

Risk and Volatility

EPR Properties has a beta of 1.75, indicating that its share price is 75% more volatile than the S&P 500. Comparatively, HG has a beta of 0.62, indicating that its share price is 38% less volatile than the S&P 500.

Profitability

This table compares EPR Properties and HG’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
EPR Properties	29.87%	8.55%	3.68%
HG	-3.02%	-1.05%	-0.74%

Valuation and Earnings

This table compares EPR Properties and HG”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
EPR Properties	$648.75 million	5.66	$173.05 million	$2.03	23.91
HG	$11.11 million	1.55	-$820,000.00	N/A	N/A

EPR Properties has higher revenue and earnings than HG.

Institutional and Insider Ownership

74.7% of EPR Properties shares are held by institutional investors. Comparatively, 1.7% of HG shares are held by institutional investors. 2.1% of EPR Properties shares are held by insiders. Comparatively, 36.1% of HG shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of recent recommendations for EPR Properties and HG, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
EPR Properties	2	3	3	1	2.33
HG	0	0	0	0	N/A

EPR Properties currently has a consensus target price of $48.06, suggesting a potential downside of 0.75%. Given EPR Properties’ higher probable upside, equities analysts clearly believe EPR Properties is more favorable than HG.

Summary

EPR Properties beats HG on 11 of the 12 factors compared between the two stocks.

About EPR Properties

EPR Properties (NYSE:EPR) is the leading diversified experiential net lease real estate investment trust (REIT), specializing in select enduring experiential properties in the real estate industry. We focus on real estate venues that create value by facilitating out of home leisure and recreation experiences where consumers choose to spend their discretionary time and money. We have total assets of approximately $5.7 billion (after accumulated depreciation of approximately $1.4 billion) across 44 states. We adhere to rigorous underwriting and investing criteria centered on key industry, property and tenant level cash flow standards. We believe our focused approach provides a competitive advantage and the potential for stable and attractive returns.

About HG

HG Holdings, Inc. engages in the title insurance and real estate businesses in the United States. It operates through four segments: Title Insurance Services, Reinsurance, Management Services, and Real Estate. The company provides title insurance, closing and/or escrow, and similar or related services in connection with residential and commercial real estate transactions. It also owns and operates a portfolio of single-tenant properties leased for the occupancy by U.S. government tenant agencies and sub-agencies, such as the Federal Bureau of Investigation, the Department of Veterans affairs, the Drug Enforcement Administration, Immigration & Customs Enforcement, the Social Security Administration, and the Department of Transportation. In addition, the company provides excess-of-loss reinsurance coverage related to catastrophic weather risk in Texas; and management advisory services, such as formation, operational, and restructuring services. The company was formerly known as Stanley Furniture Company, Inc. and changed its name to HG Holdings, Inc. in March 2018. HG Holdings, Inc. was incorporated in 1984 and is headquartered in Charlotte, North Carolina.