CUZ vs. EGP: A Deep Dive Into Value Investing Metrics and Earnings Outlook for REITs

In the realm of real estate investment trusts (), value investors often seek companies that combine attractive valuation metrics with strong earnings momentum. As 2025 draws to a close, Cousins Properties (CUZ) and EastGroup Properties (EGP) stand out as two prominent players in the industrial and office REIT sectors. However, a closer examination of their fundamental and valuation metrics reveals a clear winner for income-focused and long-term investors.

and Earnings Revisions: A Tale of Two Trajectories

Cousins Properties currently holds a Zacks Rank of #2 (Buy), signaling robust improvements in its earnings outlook. This ranks it ahead of EastGroup Properties, which carries a Zacks Rank of 3 (Hold), indicating expectations of inline returns. The disparity in rankings reflects divergent trajectories in earnings revisions. For instance, CUZ's 2025 earnings revisions have shown consistent upward momentum, driven by its strategic focus on high-growth markets and cost optimization. In contrast, EGP's earnings growth, while positive, has been more moderate. Second-quarter 2025 results highlighted a 5.3% year-over-year increase in earnings per share (EPS) to $1.20, bolstered by higher net operating income and reduced interest expenses. By the third quarter, , underscoring operational resilience but lacking the explosive growth seen in CUZ.

Valuation Metrics: CUZ's Compelling Discount

Valuation metrics paint an even clearer picture of CUZ's superiority. Its forward price-to-earnings (P/E) ratio stands at , according to stock analysis. This suggests that CUZ is trading at a steep discount relative to its future earnings potential. The gap widens when examining the price-to-earnings-to-growth (PEG) ratio: indicates it is undervalued relative to its earnings growth, according to analysis implies overvaluation.

The price-to-book (P/B) ratio further reinforces this narrative. Cousins Properties trades at a P/B ratio , meaning its market value is below its book value-a classic sign of undervaluation. In contrast, suggests investors are paying a premium for its assets, which may not be justified given its moderate earnings growth.

Strategic Implications for Investors

For income-focused investors, CUZ's lower valuation multiples and stronger earnings revisions present a more compelling risk-reward profile. A lower P/E ratio means investors can acquire shares at a fraction of EGP's cost while potentially benefiting from higher future returns. Meanwhile, EGP's elevated P/B ratio and higher PEG ratio indicate it may be overpriced relative to its fundamentals, limiting upside potential.

Long-term investors should also consider the sustainability of earnings growth. CUZ's Zacks Rank #2 status reflects strong analyst confidence in its ability to outperform peers, driven by its aggressive redevelopment projects and expanding industrial footprint. EGP, while stable, lacks the same level of momentum, with its growth largely tied to existing property performance rather than transformative initiatives.

Conclusion

In the CUZ vs. EGP debate, Cousins Properties emerges as the superior value stock for 2025. Its combination of a #2 Zacks Rank, attractive forward P/E and PEG ratios, and a discounted P/B ratio positions it as a more compelling choice for investors seeking both income and capital appreciation. While EGP remains a solid holding, its valuation metrics and earnings trajectory fail to match the allure of CUZ-a REIT that appears to be undervalued and primed for outperformance.