Taubman Centers (NYSE: TCO) and Rouse Properties (NYSE:RSE) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their earnings, institutional ownership, dividends, profitability, analyst recommendations, risk and valuation.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Taubman Centers and Rouse Properties, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Taubman Centers 2 6 2 0 2.00
Rouse Properties 0 0 0 0 N/A

Taubman Centers presently has a consensus price target of $66.17, indicating a potential upside of 24.58%. Given Taubman Centers’ higher possible upside, research analysts plainly believe Taubman Centers is more favorable than Rouse Properties.

Profitability

This table compares Taubman Centers and Rouse Properties’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Taubman Centers 13.21% -75.87% 2.03%
Rouse Properties -12.34% -9.28% -1.58%

Earnings & Valuation

This table compares Taubman Centers and Rouse Properties’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Taubman Centers $612.56 million 5.26 $132.61 million $1.05 50.58
Rouse Properties N/A N/A N/A ($0.26) -70.27

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

Dividends

Taubman Centers pays an annual dividend of $2.50 per share and has a dividend yield of 4.7%. Rouse Properties pays an annual dividend of $0.54 per share and has a dividend yield of 3.0%. Taubman Centers pays out 238.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Rouse Properties pays out -207.7% of its earnings in the form of a dividend. Taubman Centers has raised its dividend for 4 consecutive years and Rouse Properties has raised its dividend for 7 consecutive years.

Summary

Taubman Centers beats Rouse Properties on 7 of the 10 factors compared between the two stocks.

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).

About Rouse Properties

Rouse Properties, Inc. is a United States-based real estate investment company. The Company owns and manages regional malls in protected markets or submarkets in the United States. The Company operates through the retail segment, which includes the operation, development and management of regional malls. The Company’s portfolio includes approximately 40 malls and retail centers in over 20 states totaling approximately 24.9 million square feet of retail space. The Company’s properties include Animas Valley Mall; Bayshore Mall; Birchwood Mall; Cache Valley Mall; Chesterfield Towne Center; Chula Vista Center; Colony Square Mall; Fig Garden Village; Grand Traverse Mall; Greenville Mall; Lakeland Square; Lansing Mall; Mall St. Vincent; NewPark Mall; North Plains Mall; Pierre Bossier Mall; Sikes Senter; Silver Lake Mall; Southland Center; Southland Mall; Spring Hill Mall; Valley Hills Mall; Vista Ridge Mall; Washington Park Mall; West Valley Mall; Westwood Mall, and White Mountain Mall.

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