Head-To-Head Analysis: Simon Property Group (SPG) versus Taubman Centers (TCO)
Simon Property Group (NYSE: SPG) and Taubman Centers (NYSE:TCO) are both mid-cap finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, risk, analyst recommendations, dividends, valuation, profitability and institutional ownership.
Institutional & Insider Ownership
95.0% of Simon Property Group shares are held by institutional investors. Comparatively, 98.5% of Taubman Centers shares are held by institutional investors. 8.4% of Simon Property Group shares are held by insiders. Comparatively, 31.2% of Taubman Centers shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Risk & Volatility
Simon Property Group has a beta of 0.6, indicating that its share price is 40% less volatile than the S&P 500. Comparatively, Taubman Centers has a beta of 0.5, indicating that its share price is 50% less volatile than the S&P 500.
This table compares Simon Property Group and Taubman Centers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Simon Property Group||32.07%||39.29%||6.03%|
This is a summary of recent ratings and target prices for Simon Property Group and Taubman Centers, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Simon Property Group||0||5||10||0||2.67|
Simon Property Group currently has a consensus target price of $194.36, indicating a potential upside of 21.59%. Taubman Centers has a consensus target price of $66.17, indicating a potential upside of 30.84%. Given Taubman Centers’ higher possible upside, analysts plainly believe Taubman Centers is more favorable than Simon Property Group.
Simon Property Group pays an annual dividend of $7.20 per share and has a dividend yield of 4.5%. Taubman Centers pays an annual dividend of $2.50 per share and has a dividend yield of 4.9%. Simon Property Group pays out 127.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Taubman Centers pays out 193.8% 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 has increased its dividend for 7 consecutive years and Taubman Centers has increased its dividend for 7 consecutive years.
Earnings and Valuation
This table compares Simon Property Group and Taubman Centers’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Simon Property Group||$5.49 billion||9.05||$4.02 billion||$5.63||28.39|
|Taubman Centers||$606.47 million||5.06||$311.97 million||$1.29||39.20|
Simon Property Group has higher revenue and earnings than Taubman Centers. Simon Property Group is trading at a lower price-to-earnings ratio than Taubman Centers, indicating that it is currently the more affordable of the two stocks.
Simon Property Group beats Taubman Centers on 12 of the 16 factors compared between the two stocks.
About Simon Property Group
Simon Property Group, Inc. is a self-administered and self-managed real estate investment trust (REIT). The Company owns, develops and manages retail real estate properties, which consist primarily of malls, Premium Outlets and The Mills. Simon Property Group, L.P. (Operating Partnership), is the Company’s partnership subsidiary that owns all of its real estate properties and other assets. As of December 31, 2016, the Company owned or held an interest in 206 income-producing properties in the United States, which consisted of 108 malls, 67 Premium Outlets, 14 Mills, four lifestyle centers, and 13 other retail properties in 37 states and Puerto Rico. As of December 31, 2016, it had redevelopment and expansion projects, including the addition of anchors, big box tenants, and restaurants, underway at 27 properties in the United States and it had one outlet and one other retail project under development.
About Taubman Centers
Taubman Centers, Inc. is a self-administered and self-managed real estate investment trust (REIT). The Company’s segment is focused on owning, developing and managing regional shopping centers. The Taubman Realty Group Limited Partnership (the Operating Partnership or TRG) is majority-owned partnership subsidiary of the Company that owns direct or indirect interests in all of its real estate properties. The Company owns, leases, acquires, disposes of, develops, expands and manages regional and super-regional shopping centers and interests therein. Its owned portfolio of operating centers as of December 31, 2016 consisted of 23 urban and suburban shopping centers operating in 11 the United States states, Puerto Rico, South Korea, and China. The consolidated businesses consist of shopping centers and entities that are controlled by ownership or contractual agreements, The Taubman Company LLC (Manager), and Taubman Properties Asia LLC and its subsidiaries (Taubman Asia).
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