Reviewing Simon Property Group (NYSE:SPG) & Veris Residential (NYSE:VRE)

Simon Property Group (NYSE:SPG – Get Rating) and Veris Residential (NYSE:VRE – Get Rating) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their risk, valuation, analyst recommendations, profitability, earnings, dividends and institutional ownership.

Profitability

This table compares Simon Property Group and Veris Residential’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Simon Property Group	40.43%	60.33%	6.47%
Veris Residential	-14.60%	-3.57%	-1.21%

Risk & Volatility

Simon Property Group has a beta of 1.52, suggesting that its stock price is 52% more volatile than the S&P 500. Comparatively, Veris Residential has a beta of 1.19, suggesting that its stock price is 19% more volatile than the S&P 500.

Valuation and Earnings

This table compares Simon Property Group and Veris Residential’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Simon Property Group	$5.29 billion	6.89	$2.14 billion	$6.52	17.10
Veris Residential	$355.02 million	4.03	-$52.07 million	($0.63)	-24.92

Simon Property Group has higher revenue and earnings than Veris Residential. Veris Residential 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.

Analyst Recommendations

This is a summary of current ratings for Simon Property Group and Veris Residential, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Simon Property Group	0	6	5	0	2.45
Veris Residential	0	3	1	0	2.25

Simon Property Group currently has a consensus target price of $131.75, suggesting a potential upside of 18.16%. Veris Residential has a consensus target price of $16.00, suggesting a potential upside of 1.91%. Given Simon Property Group’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Simon Property Group is more favorable than Veris Residential.

Institutional and Insider Ownership

83.9% of Simon Property Group shares are held by institutional investors. Comparatively, 95.1% of Veris Residential shares are held by institutional investors. 8.5% of Simon Property Group shares are held by company insiders. Comparatively, 7.8% of Veris Residential shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

Simon Property Group beats Veris Residential on 13 of the 14 factors compared between the two stocks.

About Simon Property Group

(Get Rating)

Simon Property Group, Inc. operates as a self-administered and self-managed real estate investment trust. It owns, develops and manages retail real estate properties which primarily consist of regional malls, premium outlets and mills. Simon Property Group specializes in the ownership, development, management, leasing, acquisition and expansion of income-producing retail real estate assets. The company was founded by Fred Simon, Herbert Simon and Melvin Simon in December 1993 and is headquartered in Indianapolis, IN.

About Veris Residential

(Get Rating)

Veris Residential, Inc. is a real estate investment trust, which owns and operates a real estate portfolio comprised predominantly of Class A office and flex properties located primarily in the Northeast. It operates through the following segments: Commercial and Other Real Estate, and Multi-Family Real Estate and Services. The Commercial and Other Real Estate and Multi-Family Real Estate Portfolio segments provides leasing, property management, acquisition, development, construction, and tenant-related services. The company was founded on May 24, 1994 and is headquartered in Jersey City, NJ.