Head to Head Review: Simon Property Group (SPG) vs. Kimco Realty Corporation (NYSE:KIM)
Simon Property Group (NYSE: SPG) and Kimco Realty Corporation (NYSE:KIM) are both mid-cap finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, dividends, profitability, analyst recommendations, valuation, earnings and risk.
Earnings and Valuation
This table compares Simon Property Group and Kimco Realty Corporation’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Simon Property Group||$5.49 billion||8.94||$4.02 billion||$5.63||28.04|
|Kimco Realty Corporation||$1.17 billion||7.27||$764.78 million||$0.49||40.80|
Simon Property Group has higher revenue and earnings than Kimco Realty Corporation. Simon Property Group is trading at a lower price-to-earnings ratio than Kimco Realty Corporation, indicating that it is currently the more affordable of the two stocks.
This table compares Simon Property Group and Kimco Realty Corporation’s 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%|
|Kimco Realty Corporation||21.77%||4.68%||2.23%|
Institutional and Insider Ownership
95.6% of Simon Property Group shares are held by institutional investors. Comparatively, 90.7% of Kimco Realty Corporation shares are held by institutional investors. 8.4% of Simon Property Group shares are held by company insiders. Comparatively, 2.9% of Kimco Realty Corporation shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Simon Property Group pays an annual dividend of $7.00 per share and has a dividend yield of 4.4%. Kimco Realty Corporation pays an annual dividend of $1.08 per share and has a dividend yield of 5.4%. Simon Property Group pays out 124.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Kimco Realty Corporation pays out 220.4% 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 Kimco Realty Corporation has increased its dividend for 7 consecutive years.
This is a breakdown of current recommendations for Simon Property Group and Kimco Realty Corporation, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Simon Property Group||0||5||9||0||2.64|
|Kimco Realty Corporation||0||7||8||0||2.53|
Simon Property Group presently has a consensus target price of $195.85, indicating a potential upside of 24.04%. Kimco Realty Corporation has a consensus target price of $26.61, indicating a potential upside of 33.11%. Given Kimco Realty Corporation’s higher probable upside, analysts plainly believe Kimco Realty Corporation is more favorable than Simon Property Group.
Risk & Volatility
Simon Property Group has a beta of 0.58, meaning that its share price is 42% less volatile than the S&P 500. Comparatively, Kimco Realty Corporation has a beta of 0.67, meaning that its share price is 33% less volatile than the S&P 500.
Simon Property Group beats Kimco Realty Corporation on 13 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 Kimco Realty Corporation
Kimco Realty Corporation is a self-administered real estate investment trust. The Company is engaged in the ownership, management, development and operation of open-air shopping centers, which are anchored generally by discount department stores, grocery stores or drugstores. As of June 30, 2017, the Company had interests in 510 shopping center properties, including 84 million square feet of gross leasable area (GLA), located in 32 states, Puerto Rico and Canada. As of March 31, 2017, the Company had 380 other property interests, primarily through the Company’s preferred equity investments and other real estate investments, totaling 5.8 million square feet of GLA.
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