Simon Property Group (NYSE: SPG) and Washington Prime Group (NYSE:WPG) are both finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their dividends, valuation, institutional ownership, analyst recommendations, profitabiliy, risk and earnings.
Insider & Institutional Ownership
95.3% of Simon Property Group shares are held by institutional investors. Comparatively, 89.9% of Washington Prime Group shares are held by institutional investors. 8.4% of Simon Property Group shares are held by insiders. Comparatively, 0.3% of Washington Prime Group shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Dividends
Simon Property Group pays an annual dividend of $7.00 per share and has a dividend yield of 4.4%. Washington Prime Group pays an annual dividend of $1.00 per share and has a dividend yield of 11.0%. Simon Property Group pays out 119.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Washington Prime Group pays out 108.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Washington Prime Group has raised its dividend for 7 consecutive years. Washington Prime Group is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Risk and Volatility
Simon Property Group has a beta of 0.58, suggesting that its share price is 42% less volatile than the S&P 500. Comparatively, Washington Prime Group has a beta of 0.92, suggesting that its share price is 8% less volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of current recommendations and price targets for Simon Property Group and Washington Prime Group, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Simon Property Group | 0 | 5 | 8 | 0 | 2.62 |
| Washington Prime Group | 0 | 1 | 0 | 0 | 2.00 |
Simon Property Group currently has a consensus price target of $192.00, suggesting a potential upside of 19.61%. Given Simon Property Group’s stronger consensus rating and higher possible upside, analysts plainly believe Simon Property Group is more favorable than Washington Prime Group.
Profitability
This table compares Simon Property Group and Washington Prime Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Simon Property Group | 34.99% | 40.16% | 6.47% |
| Washington Prime Group | 8.13% | 6.36% | 1.32% |
Earnings and Valuation
This table compares Simon Property Group and Washington Prime Group’s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | EBITDA | Earnings Per Share | Price/Earnings Ratio | |
| Simon Property Group | $5.44 billion | 9.21 | $4.00 billion | $5.85 | 27.44 |
| Washington Prime Group | $835.84 million | 2.01 | $495.88 million | $0.92 | 9.85 |
Simon Property Group has higher revenue and earnings than Washington Prime Group. Washington Prime 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 Washington Prime Group on 12 of the 17 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 Washington Prime Group
Washington Prime Group Inc. (WPG Inc.), formerly WP Glimcher Inc., operates as a self-administered and self-managed real estate investment trust (REIT). The Company’s primary business is the ownership, development and management of retail real estate within the United States. The Company owns, develops and manages enclosed retail properties and community centers. As of December 31, 2016, its assets consisted of material interests in 114 shopping centers in the United States, consisting of approximately 63 million square feet of gross leasable area. The Company also owns parcels of land, which can be used for either the development of new shopping centers or the expansion of existing properties. Washington Prime Group, L.P. is the Company’s majority-owned partnership subsidiary that owns, develops and manages, through its affiliates, all of WPG Inc.’s real estate properties and other assets. Its properties include Irving Mall, Lindale Mall, Markland Plaza and Royal Eagle Plaza.
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