Simon Property Group (NYSE: SPG) and AmREIT (NYSE:AMRE) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, analyst recommendations, earnings, institutional ownership, valuation, profitability and risk.
Insider & Institutional Ownership
47.5% of Simon Property Group shares are held by institutional investors. 8.4% of Simon Property Group shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
This is a breakdown of current recommendations for Simon Property Group and AmREIT, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Simon Property Group||0||5||11||0||2.69|
Simon Property Group presently has a consensus price target of $191.88, suggesting a potential upside of 15.93%. Given Simon Property Group’s higher possible upside, analysts clearly believe Simon Property Group is more favorable than AmREIT.
Simon Property Group pays an annual dividend of $7.40 per share and has a dividend yield of 4.5%. AmREIT does not pay a dividend. Simon Property Group pays out 130.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. AmREIT has raised its dividend for 8 consecutive years.
Valuation & Earnings
This table compares Simon Property Group and AmREIT’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Simon Property Group||$5.44 billion||19.48||$1.84 billion||$5.67||29.19|
Simon Property Group has higher revenue and earnings than AmREIT. Simon Property Group is trading at a lower price-to-earnings ratio than AmREIT, indicating that it is currently the more affordable of the two stocks.
This table compares Simon Property Group and AmREIT’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Simon Property Group||31.96%||41.85%||6.09%|
Simon Property Group beats AmREIT on 10 of the 13 factors compared between the two stocks.
Simon Property Group Company Profile
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.
AmREIT Company Profile
AmREIT, Inc. (AmREIT) is a full service, vertically integrated and self-administered real estate investment trust (REIT) that owns, operates, acquires and selectively develops and redevelops primarily neighborhood and community shopping centers located in high-traffic, densely populated, affluent areas with high barriers to entry. The Company’s shopping centers are anchored by national and local retailers, including supermarket chains, drug stores and other necessity-based retailers. In June 2013, AmREIT Inc announced that it has completed the acquisition of Fountain Oaks Shopping Center, a 160,600 square foot Kroger-anchored shopping center in the north Buckhead submarket of Atlanta, Georgia. Effective September 24, 2013, AmREIT Inc, through its AmREIT Realty Investment Corp subsidiary, acquired Woodlake Square Shopping Center, an owner and operator of shopping centers. In August 2014, AmREIT Inc completed the acquisition of Tuxedo Festival Shopping Center.
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