Reviewing Simon Property Group (NYSE:SPG) and Summit Industrial Income REIT (OTCMKTS:SMMCF)

Simon Property Group (NYSE:SPGGet Free Report) and Summit Industrial Income REIT (OTCMKTS:SMMCFGet Free Report) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, dividends, profitability, risk, earnings, analyst recommendations and institutional ownership.

Profitability

This table compares Simon Property Group and Summit Industrial Income REIT’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Simon Property Group 46.49% 78.50% 7.99%
Summit Industrial Income REIT N/A N/A N/A

Dividends

Simon Property Group pays an annual dividend of $8.00 per share and has a dividend yield of 5.2%. Summit Industrial Income REIT pays an annual dividend of $0.21 per share and has a dividend yield of 1.2%. Simon Property Group pays out 101.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Summit Industrial Income REIT pays out 35.9% of its earnings in the form of a dividend. Simon Property Group has increased its dividend for 4 consecutive years. Simon Property Group is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Simon Property Group and Summit Industrial Income REIT, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Simon Property Group 0 5 5 0 2.50
Summit Industrial Income REIT 0 0 0 0 N/A

Simon Property Group currently has a consensus target price of $147.60, indicating a potential downside of 3.63%. Given Simon Property Group’s higher probable upside, analysts clearly believe Simon Property Group is more favorable than Summit Industrial Income REIT.

Insider & Institutional Ownership

93.0% of Simon Property Group shares are owned by institutional investors. Comparatively, 0.1% of Summit Industrial Income REIT shares are owned by institutional investors. 8.6% of Simon Property Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Simon Property Group and Summit Industrial Income REIT’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Simon Property Group $5.75 billion 8.68 $2.28 billion $7.85 19.51
Summit Industrial Income REIT N/A N/A N/A $0.59 29.50

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

Summary

Simon Property Group beats Summit Industrial Income REIT on 11 of the 13 factors compared between the two stocks.

About Simon Property Group

(Get Free Report)

Simon is a real estate investment trust engaged in the ownership of premier shopping, dining, entertainment and mixed-use destinations and an S&P 100 company (Simon Property Group, NYSE: SPG). Our properties across North America, Europe and Asia provide community gathering places for millions of people every day and generate billions in annual sales.

About Summit Industrial Income REIT

(Get Free Report)

Summit Industrial Income REIT is an open-ended mutual fund trust, which engages in growing and managing a portfolio of light industrial properties. Its properties are located in Ontario, Quebec, Alberta, British Columbia, and New Brunswick. The company was founded on November 24, 1998 and is headquartered in Markham, Canada.

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