Critical Review: Scentre Group (STGPF) vs. Its Competitors

Dividends

Scentre Group pays an annual dividend of $0.19 per share and has a dividend yield of 6.4%. Scentre Group pays out 75.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Retail REITs” companies pay a dividend yield of 224.3% and pay out 78.1% of their earnings in the form of a dividend.

Valuation & Earnings

This table compares Scentre Group and its peers gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Scentre Group	N/A	N/A	11.88
Scentre Group Competitors	$831.89 million	$253.68 million	32.30

Scentre Group’s peers have higher revenue and earnings than Scentre Group. Scentre Group is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Scentre Group and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Scentre Group	N/A	N/A	N/A
Scentre Group Competitors	29.36%	5.82%	3.17%

Institutional and Insider Ownership

67.9% of Scentre Group shares are owned by institutional investors. Comparatively, 59.6% of shares of all “Retail REITs” companies are owned by institutional investors. 11.4% of shares of all “Retail REITs” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

Scentre Group peers beat Scentre Group on 7 of the 9 factors compared.

About Scentre Group

Scentre Group owns and operates a leading portfolio of 42 Westfield destinations with 37 located in Australia and five in New Zealand encompassing more than 12,000 outlets. Our Westfield destinations are strategically located in the heart of the local communities we serve. Our centres are considered community hubs that connect people with services and experiences that enrich their daily lives. The Trust has a joint interest in 39 Westfield destinations.