Analyzing Simon Property Group (NYSE:SPG) & Site Centers (NYSE:SITC)

Simon Property Group (NYSE:SPG) and Site Centers (NYSE:SITC) are both finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, dividends, earnings, risk, profitability, analyst recommendations and institutional ownership.

Profitability

This table compares Simon Property Group and Site Centers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Simon Property Group	36.78%	72.38%	6.75%
Site Centers	189.28%	36.67%	24.66%

Valuation and Earnings

This table compares Simon Property Group and Site Centers”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Simon Property Group	$6.03 billion	9.68	$2.37 billion	$6.47	27.65
Site Centers	$271.09 million	1.66	$531.82 million	$6.76	1.27

Simon Property Group has higher revenue and earnings than Site Centers. Site Centers is trading at a lower price-to-earnings ratio than Simon Property Group, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Simon Property Group has a beta of 1.5, meaning that its share price is 50% more volatile than the S&P 500. Comparatively, Site Centers has a beta of 1.39, meaning that its share price is 39% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Simon Property Group and Site Centers, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Simon Property Group	0	9	5	0	2.36
Site Centers	1	4	1	0	2.00

Simon Property Group presently has a consensus price target of $187.23, indicating a potential upside of 4.67%. Site Centers has a consensus price target of $15.30, indicating a potential upside of 77.91%. Given Site Centers’ higher possible upside, analysts clearly believe Site Centers is more favorable than Simon Property Group.

Institutional & Insider Ownership

93.0% of Simon Property Group shares are held by institutional investors. Comparatively, 88.7% of Site Centers shares are held by institutional investors. 8.7% of Simon Property Group shares are held by company insiders. Comparatively, 0.2% of Site Centers shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Simon Property Group beats Site Centers on 10 of the 14 factors compared between the two stocks.

About Simon Property Group

Simon Property Group, Inc. (NYSE:SPG) is a self-administered and self-managed real estate investment trust (REIT). Simon Property Group, L.P., or the Operating Partnership, is our majority-owned partnership subsidiary that owns all of our real estate properties and other assets. In this package, the terms Simon, we, our, or the Company refer to Simon Property Group, Inc., the Operating Partnership, and its subsidiaries. We own, develop and manage premier shopping, dining, entertainment and mixed-use destinations, which consist primarily of malls, Premium Outlets, The Mills, and International Properties. At June 30, 2024, we owned or had an interest in 230 properties comprising 183 million square feet in North America, Asia and Europe. We also owned an 84% interest in The Taubman Realty Group, or TRG, which owns 22 regional, super-regional, and outlet malls in the U.S. and Asia. Additionally, at June 30, 2024, we had a 22.4% ownership interest in Klépierre, a publicly traded, Paris-based real estate company, which owns shopping centers in 14 European countries.

About Site Centers

SITE Centers is an owner and manager of open-air shopping centers located in suburban, high household income communities. The Company is a self-administered and self-managed REIT operating as a fully integrated real estate company, and is publicly traded on the New York Stock Exchange under the ticker symbol SITC.