Simon Property Group (NYSE:SPG) & Kite Realty Group Trust (NYSE:KRG) Head-To-Head Survey

Kite Realty Group Trust (NYSE:KRG) and Simon Property Group (NYSE:SPG) are both real estate companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, risk, analyst recommendations, profitability, valuation and dividends.

Institutional & Insider Ownership

90.8% of Kite Realty Group Trust shares are owned by institutional investors. Comparatively, 93.0% of Simon Property Group shares are owned by institutional investors. 2.7% of Kite Realty Group Trust shares are owned by insiders. Comparatively, 8.7% of Simon Property Group shares are owned 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.

Volatility & Risk

Kite Realty Group Trust has a beta of 0.9, suggesting that its stock price is 10% less volatile than the S&P 500. Comparatively, Simon Property Group has a beta of 1.27, suggesting that its stock price is 27% more volatile than the S&P 500.

Earnings & Valuation

This table compares Kite Realty Group Trust and Simon Property Group”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kite Realty Group Trust	$792.17 million	6.43	$298.66 million	$1.62	15.89
Simon Property Group	$6.36 billion	11.94	$4.63 billion	$13.86	16.94

Simon Property Group has higher revenue and earnings than Kite Realty Group Trust. Kite Realty Group Trust 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.

Dividends

Kite Realty Group Trust pays an annual dividend of $1.16 per share and has a dividend yield of 4.5%. Simon Property Group pays an annual dividend of $9.00 per share and has a dividend yield of 3.8%. Kite Realty Group Trust pays out 71.6% of its earnings in the form of a dividend. Simon Property Group pays out 64.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Kite Realty Group Trust has raised its dividend for 4 consecutive years and Simon Property Group has raised its dividend for 4 consecutive years.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Kite Realty Group Trust and Simon Property Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kite Realty Group Trust	1	8	2	0	2.09
Simon Property Group	0	13	9	0	2.41

Kite Realty Group Trust currently has a consensus price target of $27.89, suggesting a potential upside of 8.33%. Simon Property Group has a consensus price target of $230.10, suggesting a potential downside of 2.01%. Given Kite Realty Group Trust’s higher possible upside, equities research analysts plainly believe Kite Realty Group Trust is more favorable than Simon Property Group.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Kite Realty Group Trust	42.95%	11.78%	5.38%
Simon Property Group	63.08%	78.14%	11.35%

Summary

Simon Property Group beats Kite Realty Group Trust on 14 of the 16 factors compared between the two stocks.

About Kite Realty Group Trust

Kite Realty Group Trust is a real estate investment trust that owns, operates, and develops open-air shopping centers and mixed-use properties. Its portfolio includes neighborhood and community centers, many of which are anchored by grocery stores and other essential retailers. The company leases space to retailers and service businesses and works to manage, maintain, and redevelop its properties. Its centers serve communities in Sun Belt markets and other selected regions across the United States.

About Simon Property Group

Simon Property Group is a real estate investment trust that owns, develops and manages shopping, dining and entertainment destinations. Its portfolio includes regional malls, premium outlet centers and mixed-use properties, which combine retail with other uses such as restaurants and entertainment. The company’s properties are located primarily in the United States, with additional investments and operations in international markets, including Europe and Asia. Its business activities include leasing space to retailers and other tenants, operating properties and investing in redevelopment and expansion projects.