Analyzing Scentre Group (OTCMKTS:STGPF) and Kimco Realty (NYSE:KIM)

Kimco Realty (NYSE:KIM) and Scentre Group (OTCMKTS:STGPF) are both real estate companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, risk, dividends, institutional ownership, analyst recommendations, profitability and earnings.

Dividends

Kimco Realty pays an annual dividend of $1.04 per share and has a dividend yield of 4.3%. Scentre Group pays an annual dividend of $0.19 per share and has a dividend yield of 6.4%. Kimco Realty pays out 122.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. 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.

Institutional & Insider 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 company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

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

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Kimco Realty and Scentre Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kimco Realty	0	10	7	1	2.50
Scentre Group	0	0	0	0	0.00

Kimco Realty currently has a consensus price target of $26.50, suggesting a potential upside of 8.62%. Given Kimco Realty’s stronger consensus rating and higher probable upside, research analysts plainly believe Kimco Realty is more favorable than Scentre Group.

Valuation and Earnings

This table compares Kimco Realty and Scentre Group”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kimco Realty	$2.14 billion	7.65	$584.74 million	$0.85	28.70
Scentre Group	N/A	N/A	N/A	$0.26	11.88

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.

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.