Kimco Realty Corporation (NYSE: KIM) and Simon Property Group (NYSE:SPG) are both mid-cap finance companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, earnings, dividends, institutional ownership, valuation, profitability and analyst recommendations.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Kimco Realty Corporation and Simon Property Group, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Kimco Realty Corporation 0 6 8 0 2.57
Simon Property Group 0 5 9 0 2.64

Kimco Realty Corporation currently has a consensus price target of $26.62, indicating a potential upside of 37.64%. Simon Property Group has a consensus price target of $195.85, indicating a potential upside of 27.52%. Given Kimco Realty Corporation’s higher probable upside, equities research analysts plainly believe Kimco Realty Corporation is more favorable than Simon Property Group.

Valuation and Earnings

This table compares Kimco Realty Corporation and Simon Property Group’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Kimco Realty Corporation $1.17 billion 7.04 $764.78 million $0.49 39.47
Simon Property Group $5.49 billion 8.70 $4.02 billion $5.63 27.28

Simon Property Group has higher revenue and earnings than Kimco Realty Corporation. Simon Property Group is trading at a lower price-to-earnings ratio than Kimco Realty Corporation, indicating that it is currently the more affordable of the two stocks.

Dividends

Kimco Realty Corporation pays an annual dividend of $1.08 per share and has a dividend yield of 5.6%. Simon Property Group pays an annual dividend of $7.20 per share and has a dividend yield of 4.7%. Kimco Realty Corporation pays out 220.4% 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 127.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Kimco Realty Corporation has increased its dividend for 7 consecutive years and Simon Property Group has increased its dividend for 7 consecutive years.

Institutional and Insider Ownership

91.3% of Kimco Realty Corporation shares are owned by institutional investors. Comparatively, 95.8% of Simon Property Group shares are owned by institutional investors. 2.9% of Kimco Realty Corporation shares are owned by insiders. Comparatively, 8.4% of Simon Property Group shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Risk and Volatility

Kimco Realty Corporation has a beta of 0.67, suggesting that its stock price is 33% less volatile than the S&P 500. Comparatively, Simon Property Group has a beta of 0.58, suggesting that its stock price is 42% less volatile than the S&P 500.

Profitability

This table compares Kimco Realty Corporation and Simon Property Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Kimco Realty Corporation 21.77% 4.68% 2.23%
Simon Property Group 32.07% 39.29% 6.03%

Summary

Simon Property Group beats Kimco Realty Corporation on 13 of the 16 factors compared between the two stocks.

Kimco Realty Corporation Company Profile

Kimco Realty Corporation is a self-administered real estate investment trust. The Company is engaged in the ownership, management, development and operation of open-air shopping centers, which are anchored generally by discount department stores, grocery stores or drugstores. As of June 30, 2017, the Company had interests in 510 shopping center properties, including 84 million square feet of gross leasable area (GLA), located in 32 states, Puerto Rico and Canada. As of March 31, 2017, the Company had 380 other property interests, primarily through the Company’s preferred equity investments and other real estate investments, totaling 5.8 million square feet of GLA.

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.

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