Contrasting Scentre Group (OTCMKTS:STGPF) and Simon Property Group (NYSE:SPG)

Scentre Group (OTCMKTS:STGPF) and Simon Property Group (NYSE:SPG) are both real estate companies, but which is the better investment? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, profitability, institutional ownership, dividends, valuation and risk.

Institutional & Insider Ownership

67.9% of Scentre Group shares are held by institutional investors. Comparatively, 93.0% of Simon Property Group shares are held by institutional investors. 8.7% of Simon Property Group shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings for Scentre Group and Simon Property Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Scentre Group	0	0	0	0	0.00
Simon Property Group	0	11	4	1	2.38

Simon Property Group has a consensus price target of $216.14, suggesting a potential downside of 2.45%. Given Simon Property Group’s stronger consensus rating and higher possible upside, analysts plainly believe Simon Property Group is more favorable than Scentre Group.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Scentre Group	N/A	N/A	N/A
Simon Property Group	70.60%	104.54%	12.76%

Dividends

Scentre Group pays an annual dividend of $0.19 per share and has a dividend yield of 6.3%. Simon Property Group pays an annual dividend of $9.00 per share and has a dividend yield of 4.1%. Scentre Group pays out 75.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Simon Property Group pays out 62.5% of its earnings in the form of a dividend. Simon Property Group has raised its dividend for 4 consecutive years.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Scentre Group	N/A	N/A	N/A	$0.26	12.07
Simon Property Group	$6.36 billion	11.29	$4.63 billion	$14.39	15.40

Simon Property Group has higher revenue and earnings than Scentre Group. Scentre Group 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.

Summary

Simon Property Group beats Scentre Group on 14 of the 15 factors compared between the two stocks.

About Scentre Group

Scentre Group owns and operates a leading portfolio of 42 Westfield destinations with 37 located in Australia and five in New Zealand encompassing more than 12,000 outlets. Our Westfield destinations are strategically located in the heart of the local communities we serve. Our centres are considered community hubs that connect people with services and experiences that enrich their daily lives. The Trust has a joint interest in 39 Westfield destinations.

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.