Rouse Properties (NYSE: RSE) and Simon Property Group (NYSE:SPG) are both financials companies, but which is the better business? We will compare the two companies based on the strength of their risk, valuation, analyst recommendations, institutional ownership, profitability, dividends and earnings.

Profitability

This table compares Rouse Properties and Simon Property Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Rouse Properties -12.34% -9.28% -1.58%
Simon Property Group 32.07% 39.29% 6.03%

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Rouse Properties and Simon Property Group, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Rouse Properties 0 0 0 0 N/A
Simon Property Group 0 5 10 0 2.67

Simon Property Group has a consensus price target of $194.36, suggesting a potential upside of 23.36%. Given Simon Property Group’s higher possible upside, analysts plainly believe Simon Property Group is more favorable than Rouse Properties.

Dividends

Simon Property Group pays an annual dividend of $7.20 per share and has a dividend yield of 4.6%. Rouse Properties does not pay a dividend. 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. Rouse Properties has increased its dividend for 7 consecutive years and Simon Property Group has increased its dividend for 4 consecutive years.

Earnings and Valuation

This table compares Rouse Properties and Simon Property Group’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Rouse Properties N/A N/A N/A N/A N/A
Simon Property Group $5.49 billion 8.92 $4.02 billion $5.63 27.98

Simon Property Group has higher revenue and earnings than Rouse Properties.

Insider & Institutional Ownership

95.2% 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 endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Risk & Volatility

Rouse Properties has a beta of 0.96, indicating that its stock price is 4% less volatile than the S&P 500. Comparatively, Simon Property Group has a beta of 0.58, indicating that its stock price is 42% less volatile than the S&P 500.

Summary

Simon Property Group beats Rouse Properties on 9 of the 12 factors compared between the two stocks.

About Rouse Properties

Rouse Properties, Inc. is a United States-based real estate investment company. The Company owns and manages regional malls in protected markets or submarkets in the United States. The Company operates through the retail segment, which includes the operation, development and management of regional malls. The Company’s portfolio includes approximately 40 malls and retail centers in over 20 states totaling approximately 24.9 million square feet of retail space. The Company’s properties include Animas Valley Mall; Bayshore Mall; Birchwood Mall; Cache Valley Mall; Chesterfield Towne Center; Chula Vista Center; Colony Square Mall; Fig Garden Village; Grand Traverse Mall; Greenville Mall; Lakeland Square; Lansing Mall; Mall St. Vincent; NewPark Mall; North Plains Mall; Pierre Bossier Mall; Sikes Senter; Silver Lake Mall; Southland Center; Southland Mall; Spring Hill Mall; Valley Hills Mall; Vista Ridge Mall; Washington Park Mall; West Valley Mall; Westwood Mall, and White Mountain Mall.

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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