Kite Realty Group Trust (NYSE: KRG) and Simon Property Group (NYSE:SPG) are both finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, earnings, profitability, risk, analyst recommendations, valuation and dividends.
This table compares Kite Realty Group Trust and Simon Property Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Kite Realty Group Trust||3.31%||0.74%||0.33%|
|Simon Property Group||35.14%||44.93%||6.22%|
Kite Realty Group Trust has a beta of 0.42, suggesting that its stock price is 58% less volatile than the S&P 500. Comparatively, Simon Property Group has a beta of 0.55, suggesting that its stock price is 45% less volatile than the S&P 500.
Kite Realty Group Trust pays an annual dividend of $1.27 per share and has a dividend yield of 8.2%. Simon Property Group pays an annual dividend of $7.80 per share and has a dividend yield of 5.0%. Kite Realty Group Trust pays out 907.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Simon Property Group pays out 125.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Kite Realty Group Trust has raised its dividend for 4 consecutive years and Simon Property Group has raised its dividend for 8 consecutive years.
This is a summary of recent ratings and price targets for Kite Realty Group Trust and Simon Property Group, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Kite Realty Group Trust||0||4||4||0||2.50|
|Simon Property Group||0||5||11||0||2.69|
Kite Realty Group Trust currently has a consensus price target of $20.00, indicating a potential upside of 29.20%. Simon Property Group has a consensus price target of $191.88, indicating a potential upside of 22.93%. Given Kite Realty Group Trust’s higher possible upside, analysts plainly believe Kite Realty Group Trust is more favorable than Simon Property Group.
Insider & Institutional Ownership
91.7% of Kite Realty Group Trust shares are owned by institutional investors. Comparatively, 47.0% of Simon Property Group shares are owned by institutional investors. 1.9% of Kite Realty Group Trust shares are owned by company insiders. Comparatively, 8.4% of Simon Property Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Earnings and Valuation
This table compares Kite Realty Group Trust and Simon Property Group’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Kite Realty Group Trust||$358.82 million||3.61||$11.87 million||$0.14||110.57|
|Simon Property Group||$5.54 billion||18.03||$1.95 billion||$6.24||25.01|
Simon Property Group has higher revenue and earnings than Kite Realty Group Trust. Simon Property Group is trading at a lower price-to-earnings ratio than Kite Realty Group Trust, indicating that it is currently the more affordable of the two stocks.
Simon Property Group beats Kite Realty Group Trust on 13 of the 17 factors compared between the two stocks.
About Kite Realty Group Trust
Kite Realty Group Trust is a real estate investment trust. The Company, through its subsidiary, Kite Realty Group, L.P., owns interests in various operating subsidiaries and joint ventures engaged in the ownership, operation, acquisition, development and redevelopment of neighborhood and community shopping centers in selected markets in the United States. As of December 31, 2016, the Company owned interests in 108 operating retail properties totaling approximately 21.4 million square feet of gross leasable area (including approximately 6.3 million square feet of non-owned anchor space) located in 20 states. As of December 31, 2016, the Company had an interest in two development projects under construction. In addition to its development projects, as of December 31, 2016, the Company had nine redevelopment projects. As of December 31, 2016, the Company owned interests in one office operating property and an associated parking garage.
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.
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