Financial Comparison: Simon Property Group (SPG) and Acadia Realty Trust (AKR)
Simon Property Group (NYSE: SPG) and Acadia Realty Trust (NYSE:AKR) are both mid-cap finance companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, earnings, analyst recommendations, risk, profitability, valuation and institutional ownership.
Risk & Volatility
Simon Property Group has a beta of 0.6, meaning that its share price is 40% less volatile than the S&P 500. Comparatively, Acadia Realty Trust has a beta of 0.62, meaning that its share price is 38% less volatile than the S&P 500.
Simon Property Group pays an annual dividend of $7.20 per share and has a dividend yield of 4.5%. Acadia Realty Trust pays an annual dividend of $1.04 per share and has a dividend yield of 3.6%. Simon Property Group pays out 127.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Acadia Realty Trust pays out 144.4% 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 has increased its dividend for 4 consecutive years and Acadia Realty Trust has increased its dividend for 7 consecutive years. Simon Property Group is clearly the better dividend stock, given its higher yield and lower payout ratio.
Valuation & Earnings
This table compares Simon Property Group and Acadia Realty Trust’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Simon Property Group||$5.44 billion||18.87||$1.84 billion||$5.67||28.27|
|Acadia Realty Trust||$189.94 million||12.82||$72.77 million||$0.72||40.42|
Simon Property Group has higher revenue and earnings than Acadia Realty Trust. Simon Property Group is trading at a lower price-to-earnings ratio than Acadia Realty Trust, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
95.2% of Simon Property Group shares are held by institutional investors. 8.4% of Simon Property Group shares are held by company insiders. Comparatively, 1.7% of Acadia Realty Trust shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
This table compares Simon Property Group and Acadia Realty Trust’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Simon Property Group||31.96%||41.85%||6.09%|
|Acadia Realty Trust||25.34%||2.77%||1.50%|
This is a summary of recent recommendations and price targets for Simon Property Group and Acadia Realty Trust, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Simon Property Group||0||5||10||0||2.67|
|Acadia Realty Trust||0||1||3||0||2.75|
Simon Property Group presently has a consensus target price of $192.33, suggesting a potential upside of 19.98%. Acadia Realty Trust has a consensus target price of $33.50, suggesting a potential upside of 15.12%. Given Simon Property Group’s higher possible upside, equities research analysts clearly believe Simon Property Group is more favorable than Acadia Realty Trust.
Simon Property Group beats Acadia Realty Trust on 13 of the 17 factors compared between the two stocks.
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.
Acadia Realty Trust Company Profile
Acadia Realty Trust is a real estate investment trust. The Company is focused on the ownership, acquisition, development and management of retail properties located in the United States. It operates through three segments: Core Portfolio, Funds and Structured Financing. Core Portfolio and Fund properties primarily consist of street and urban retail, and dense suburban shopping centers. Funds holds primarily retail real estate in which it co-invests with institutional investors. Structured Financing consists of earnings and expenses related to notes and mortgages receivable, which are held within the Core Portfolio or the Funds. As of December 31, 2016, it had ownership interests in 182 properties within its core portfolio. In the Core Portfolio segment, the Company owned an interest in a 311,000 square foot shopping center, a 28,000 square foot retail and an interest in an 87,000 square foot retail property, among others, as of December 31, 2016.
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