Contrasting Simon Property Group (SPG) & Its Peers

Simon Property Group (NYSE:SPG) is one of 85 publicly-traded companies in the “Retail REITs” industry, but how does it weigh in compared to its rivals? We will compare Simon Property Group to related businesses based on the strength of its valuation, dividends, profitability, risk, analyst recommendations, earnings and institutional ownership.

Risk and Volatility

Simon Property Group has a beta of 1.27, indicating that its stock price is 27% more volatile than the S&P 500. Comparatively, Simon Property Group’s rivals have a beta of 0.88, indicating that their average stock price is 12% less volatile than the S&P 500.

Profitability

This table compares Simon Property Group and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Simon Property Group	63.08%	78.14%	11.35%
Simon Property Group Competitors	30.12%	5.04%	3.14%

Dividends

Simon Property Group pays an annual dividend of $9.00 per share and has a dividend yield of 3.9%. Simon Property Group pays out 64.9% of its earnings in the form of a dividend. As a group, “Retail REITs” companies pay a dividend yield of 231.4% and pay out 78.0% of their earnings in the form of a dividend. Simon Property Group has raised its dividend for 4 consecutive years.

Institutional & Insider Ownership

93.0% of Simon Property Group shares are owned by institutional investors. Comparatively, 59.3% of shares of all “Retail REITs” companies are owned by institutional investors. 8.7% of Simon Property Group shares are owned by company insiders. Comparatively, 11.5% of shares of all “Retail REITs” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of recent recommendations for Simon Property Group and its rivals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Simon Property Group	0	13	9	0	2.41
Simon Property Group Competitors	963	3974	3447	138	2.32

Simon Property Group currently has a consensus price target of $228.67, suggesting a potential downside of 0.53%. As a group, “Retail REITs” companies have a potential upside of 11.24%. Given Simon Property Group’s rivals higher probable upside, analysts clearly believe Simon Property Group has less favorable growth aspects than its rivals.

Earnings & Valuation

This table compares Simon Property Group and its rivals gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Simon Property Group	$6.36 billion	$4.63 billion	16.59
Simon Property Group Competitors	$823.67 million	$253.68 million	9.04

Simon Property Group has higher revenue and earnings than its rivals. Simon Property Group is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Summary

Simon Property Group beats its rivals on 11 of the 15 factors compared.

Simon Property Group Company Profile

Simon Property Group, Inc. (NYSE:SPG) is a self-administered and self-managed real estate investment trust (REIT). Simon Property Group, L.P., or the Operating Partnership, is our majority-owned partnership subsidiary that owns all of our real estate properties and other assets. In this package, the terms Simon, we, our, or the Company refer to Simon Property Group, Inc., the Operating Partnership, and its subsidiaries. We own, develop and manage premier shopping, dining, entertainment and mixed-use destinations, which consist primarily of malls, Premium Outlets, The Mills, and International Properties. At June 30, 2024, we owned or had an interest in 230 properties comprising 183 million square feet in North America, Asia and Europe. We also owned an 84% interest in The Taubman Realty Group, or TRG, which owns 22 regional, super-regional, and outlet malls in the U.S. and Asia. Additionally, at June 30, 2024, we had a 22.4% ownership interest in Klépierre, a publicly traded, Paris-based real estate company, which owns shopping centers in 14 European countries.