Kite Realty Group Trust (NYSE:KRG – Get Free Report) and Simon Property Group (NYSE:SPG – Get Free Report) are both real estate companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, risk, dividends, valuation, earnings, institutional ownership and profitability.
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 company insiders. Comparatively, 8.7% of Simon Property Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Valuation & Earnings
This table compares Kite Realty Group Trust and Simon Property Group”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Kite Realty Group Trust | $844.36 million | 5.97 | $298.66 million | $1.62 | 15.73 |
| Simon Property Group | $6.36 billion | 11.64 | $4.63 billion | $14.18 | 16.15 |
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.
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 | 66.56% | 89.32% | 12.03% |
Analyst Ratings
This is a summary of recent ratings for Kite Realty Group Trust and Simon Property Group, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Kite Realty Group Trust | 1 | 9 | 2 | 0 | 2.08 |
| Simon Property Group | 0 | 13 | 9 | 0 | 2.41 |
Kite Realty Group Trust currently has a consensus price target of $27.78, indicating a potential upside of 9.01%. Simon Property Group has a consensus price target of $228.67, indicating a potential downside of 0.13%. Given Kite Realty Group Trust’s higher possible upside, analysts clearly believe Kite Realty Group Trust is more favorable than Simon Property Group.
Volatility & Risk
Kite Realty Group Trust has a beta of 0.9, indicating that its share price is 10% less volatile than the S&P 500. Comparatively, Simon Property Group has a beta of 1.27, indicating that its share price is 27% more volatile than the S&P 500.
Dividends
Kite Realty Group Trust pays an annual dividend of $1.16 per share and has a dividend yield of 4.6%. Simon Property Group pays an annual dividend of $9.00 per share and has a dividend yield of 3.9%. Kite Realty Group Trust pays out 71.6% of its earnings in the form of a dividend. Simon Property Group pays out 63.5% 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 increased its dividend for 4 consecutive years and Simon Property Group has increased its dividend for 4 consecutive years.
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 (NYSE: KRG) is a real estate investment trust (REIT) headquartered in Indianapolis, IN that is one of the largest publicly traded owners and operators of open-air shopping centers and mixed-use assets. The Company’s primarily grocery-anchored portfolio is located in high-growth Sun Belt and select strategic gateway markets. The combination of necessity-based grocery-anchored neighborhood and community centers, along with vibrant mixed-use assets makes the KRG portfolio an ideal mix for both retailers and consumers. Publicly listed since 2004, KRG has nearly 60 years of experience in developing, constructing and operating real estate. Using operational, investment, development, and redevelopment expertise, KRG continuously optimizes its portfolio to maximize value and return to shareholders. As of December 31, 2023, the Company owned interests in 180 U.S. open-air shopping centers and mixed-use assets, comprising approximately 28.1 million square feet of gross leasable space.
About Simon Property Group
Simon Property Group, Inc. (NYSE:SPG) is a self-administered and self-managed real estate investment trust (REIT). Simon Property Group, L.P., or the Operating Partnership, is our majority-owned partnership subsidiary that owns all of our real estate properties and other assets. In this package, the terms Simon, we, our, or the Company refer to Simon Property Group, Inc., the Operating Partnership, and its subsidiaries. We own, develop and manage premier shopping, dining, entertainment and mixed-use destinations, which consist primarily of malls, Premium Outlets, The Mills, and International Properties. At June 30, 2024, we owned or had an interest in 230 properties comprising 183 million square feet in North America, Asia and Europe. We also owned an 84% interest in The Taubman Realty Group, or TRG, which owns 22 regional, super-regional, and outlet malls in the U.S. and Asia. Additionally, at June 30, 2024, we had a 22.4% ownership interest in Klépierre, a publicly traded, Paris-based real estate company, which owns shopping centers in 14 European countries.
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