Dynex Capital (NYSE:DX – Get Free Report) and Simon Property Group (NYSE:SPG – Get Free Report) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their profitability, institutional ownership, dividends, valuation, analyst recommendations, earnings and risk.
Profitability
This table compares Dynex Capital and Simon Property Group’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Dynex Capital | 30.50% | -7.25% | -0.92% |
Simon Property Group | 42.30% | 70.97% | 7.18% |
Analyst Recommendations
This is a summary of recent ratings and target prices for Dynex Capital and Simon Property Group, as reported by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Dynex Capital | 0 | 2 | 3 | 0 | 2.60 |
Simon Property Group | 0 | 4 | 4 | 0 | 2.50 |
Dividends
Dynex Capital pays an annual dividend of $1.56 per share and has a dividend yield of 12.9%. Simon Property Group pays an annual dividend of $7.80 per share and has a dividend yield of 5.5%. Dynex Capital pays out 133.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Simon Property Group pays out 111.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Simon Property Group has raised its dividend for 4 consecutive years.
Insider and Institutional Ownership
38.3% of Dynex Capital shares are held by institutional investors. Comparatively, 93.0% of Simon Property Group shares are held by institutional investors. 2.5% of Dynex Capital shares are held by insiders. Comparatively, 8.5% of Simon Property Group shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Risk and Volatility
Dynex Capital has a beta of 1.33, suggesting that its share price is 33% more volatile than the S&P 500. Comparatively, Simon Property Group has a beta of 1.68, suggesting that its share price is 68% more volatile than the S&P 500.
Valuation and Earnings
This table compares Dynex Capital and Simon Property Group’s top-line revenue, earnings per share (EPS) and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Dynex Capital | $112.09 million | 6.91 | -$6.13 million | $1.17 | 10.32 |
Simon Property Group | $5.66 billion | 8.23 | $2.28 billion | $6.98 | 20.48 |
Simon Property Group has higher revenue and earnings than Dynex Capital. Dynex Capital 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.
Summary
Simon Property Group beats Dynex Capital on 14 of the 17 factors compared between the two stocks.
About Dynex Capital
Dynex Capital, Inc., a mortgage real estate investment trust, invests in mortgage-backed securities (MBS) on a leveraged basis in the United States. It invests in agency and non-agency MBS consisting of residential MBS, commercial MBS (CMBS), and CMBS interest-only securities. Agency MBS have a guaranty of principal payment by an agency of the U.S. government or a U.S. government-sponsored entity, such as Fannie Mae and Freddie Mac. Non-Agency MBS have no such guaranty of payment. The company has qualified as a real estate investment trust for federal income tax purposes. It generally would not be subject to federal income taxes if it distributes at least 90% of its taxable income to its stockholders as dividends. Dynex Capital, Inc. was incorporated in 1987 and is headquartered in Glen Allen, Virginia.
About Simon Property Group
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.
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