Veris Residential (NYSE:VRE) and Simon Property Group (NYSE:SPG) Critical Survey

Veris Residential (NYSE:VRE – Get Rating) and Simon Property Group (NYSE:SPG – Get Rating) are both finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their earnings, analyst recommendations, valuation, risk, dividends, institutional ownership and profitability.

Valuation and Earnings

This table compares Veris Residential and Simon Property Group’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Veris Residential	$355.02 million	3.68	-$52.07 million	($0.63)	-22.75
Simon Property Group	$5.29 billion	6.44	$2.14 billion	$6.52	16.00

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Veris Residential	-14.60%	-3.57%	-1.21%
Simon Property Group	40.43%	60.33%	6.47%

Risk & Volatility

Veris Residential has a beta of 1.19, suggesting that its share price is 19% more volatile than the S&P 500. Comparatively, Simon Property Group has a beta of 1.52, suggesting that its share price is 52% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings for Veris Residential and Simon Property Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Veris Residential	0	3	1	0	2.25
Simon Property Group	0	6	5	0	2.45

Veris Residential presently has a consensus price target of $16.00, suggesting a potential upside of 11.65%. Simon Property Group has a consensus price target of $130.58, suggesting a potential upside of 25.19%. Given Simon Property Group’s stronger consensus rating and higher possible upside, analysts plainly believe Simon Property Group is more favorable than Veris Residential.

Institutional and Insider Ownership

95.1% of Veris Residential shares are owned by institutional investors. Comparatively, 83.9% of Simon Property Group shares are owned by institutional investors. 7.8% of Veris Residential shares are owned by insiders. Comparatively, 8.5% 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.

Summary

Simon Property Group beats Veris Residential on 12 of the 13 factors compared between the two stocks.

About Veris Residential

(Get Rating)

Veris Residential, Inc. is a real estate investment trust, which owns and operates a real estate portfolio comprised predominantly of Class A office and flex properties located primarily in the Northeast. It operates through the following segments: Commercial and Other Real Estate, and Multi-Family Real Estate and Services. The Commercial and Other Real Estate and Multi-Family Real Estate Portfolio segments provides leasing, property management, acquisition, development, construction, and tenant-related services. The company was founded on May 24, 1994 and is headquartered in Jersey City, NJ.

About Simon Property Group

(Get Rating)

Simon Property Group, Inc. is a self-administered and self-managed real estate investment trust, which engages in the ownership, development, and management of shopping, dining, entertainment, and mixed-used destinations, which consist primarily of malls, Premium Outlets, and The Mills. The company was founded by Fred Simon, Herbert Simon and Melvin Simon in 1993 and is headquartered in Indianapolis, IN.