Analyzing Kimco Realty (NYSE:KIM) & Scentre Group (OTCMKTS:STGPF)
by Danessa Lincoln · The Markets DailyKimco Realty (NYSE:KIM – Get Free Report) and Scentre Group (OTCMKTS:STGPF – Get Free Report) are both real estate companies, but which is the better investment? We will contrast the two businesses based on the strength of their institutional ownership, risk, valuation, analyst recommendations, dividends, earnings and profitability.
Earnings & Valuation
This table compares Kimco Realty and Scentre Group”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Kimco Realty | $2.19 billion | 7.37 | $584.74 million | $0.85 | 28.27 |
| Scentre Group | N/A | N/A | N/A | $0.26 | 9.15 |
Kimco Realty has higher revenue and earnings than Scentre Group. Scentre Group is trading at a lower price-to-earnings ratio than Kimco Realty, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
89.2% of Kimco Realty shares are owned by institutional investors. Comparatively, 67.9% of Scentre Group shares are owned by institutional investors. 2.2% of Kimco Realty shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Dividends
Kimco Realty pays an annual dividend of $1.12 per share and has a dividend yield of 4.7%. Scentre Group pays an annual dividend of $0.19 per share and has a dividend yield of 8.3%. Kimco Realty pays out 131.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Scentre Group pays out 75.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Kimco Realty has increased its dividend for 2 consecutive years. Scentre Group is clearly the better dividend stock, given its higher yield and lower payout ratio.
Analyst Ratings
This is a summary of current ratings and recommmendations for Kimco Realty and Scentre Group, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Kimco Realty | 0 | 9 | 7 | 1 | 2.53 |
| Scentre Group | 0 | 0 | 0 | 0 | 0.00 |
Kimco Realty currently has a consensus price target of $26.50, indicating a potential upside of 10.28%. Given Kimco Realty’s stronger consensus rating and higher possible upside, research analysts plainly believe Kimco Realty is more favorable than Scentre Group.
Profitability
This table compares Kimco Realty and Scentre Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Kimco Realty | 27.76% | 5.76% | 3.07% |
| Scentre Group | N/A | N/A | N/A |
Summary
Kimco Realty beats Scentre Group on 13 of the 15 factors compared between the two stocks.
About Kimco Realty
Kimco Realty Corp. is a real estate investment trust (REIT) headquartered in New Hyde Park, N.Y., that is one of North America’s largest publicly traded owners and operators of open-air shopping centers. As of December 31, 2018, the company owned interests in 437 U.S. shopping centers comprising 76 million square feet of leasable space primarily concentrated in the top major metropolitan markets.
About Scentre Group
Scentre Group owns and operates a leading portfolio of 42 Westfield destinations with 37 located in Australia and five in New Zealand encompassing more than 12,000 outlets. Our Westfield destinations are strategically located in the heart of the local communities we serve. Our centres are considered community hubs that connect people with services and experiences that enrich their daily lives. The Trust has a joint interest in 39 Westfield destinations.