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

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for CoreSite Realty Corporation and Simon Property Group, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CoreSite Realty Corporation 0 7 4 0 2.36
Simon Property Group 0 5 9 0 2.64

CoreSite Realty Corporation currently has a consensus target price of $95.11, suggesting a potential downside of 19.30%. Simon Property Group has a consensus target price of $195.85, suggesting a potential upside of 25.34%. Given Simon Property Group’s stronger consensus rating and higher probable upside, analysts plainly believe Simon Property Group is more favorable than CoreSite Realty Corporation.

Volatility & Risk

CoreSite Realty Corporation has a beta of 0.57, indicating that its share price is 43% less volatile than the S&P 500. Comparatively, Simon Property Group has a beta of 0.58, indicating that its share price is 42% less volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
CoreSite Realty Corporation 15.15% 14.14% 4.69%
Simon Property Group 32.07% 39.29% 6.03%

Earnings & Valuation

This table compares CoreSite Realty Corporation and Simon Property Group’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
CoreSite Realty Corporation $444.59 million 9.07 $232.47 million $1.74 67.74
Simon Property Group $5.49 billion 8.85 $4.02 billion $5.63 27.75

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

Dividends

CoreSite Realty Corporation pays an annual dividend of $3.60 per share and has a dividend yield of 3.1%. Simon Property Group pays an annual dividend of $7.20 per share and has a dividend yield of 4.6%. CoreSite Realty Corporation pays out 206.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. 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. CoreSite Realty Corporation has raised its dividend for 6 consecutive years and Simon Property Group has raised its dividend for 7 consecutive years. Simon Property Group is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider and Institutional Ownership

98.5% of CoreSite Realty Corporation shares are held by institutional investors. Comparatively, 95.2% of Simon Property Group shares are held by institutional investors. 1.5% of CoreSite Realty Corporation shares are held by company insiders. Comparatively, 8.4% of Simon Property Group shares are held 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.

Summary

Simon Property Group beats CoreSite Realty Corporation on 15 of the 17 factors compared between the two stocks.

About CoreSite Realty Corporation

CoreSite Realty Corporation (CoreSite) is an integrated, self-administered and self-managed real estate investment trust. The Company, through its controlling interest in CoreSite, L.P., is engaged in the business of ownership, acquisition, construction and operation of data centers across a range of markets in the United States, including the Northern Virginia, New York and San Francisco Bay areas, Chicago, Los Angeles, Boston, Miami and Denver. The enterprises, network operators, cloud providers and supporting service providers choose CoreSite to connect and protect their data, applications and computing workloads. Its offerings include the CoreSite Open Cloud Exchange and the Any2 Internet Exchange. As of December 31, 2016, it had offered cloud-enabled, network data center campuses with over 20,000 interconnections across its portfolio and direct access to carriers and Internet service providers, cloud and information technology service providers, and inter site connectivity.

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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