Dynex Capital (NYSE:DX) and Simon Property Group (NYSE:SPG) Financial Comparison

Dynex Capital (NYSE:DX) and Simon Property Group (NYSE:SPG) are both real estate companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, valuation, dividends, profitability, risk, analyst recommendations and institutional ownership.

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%

Dividends

Dynex Capital pays an annual dividend of $1.56 per share and has a dividend yield of 13.1%. Simon Property Group pays an annual dividend of $7.80 per share and has a dividend yield of 5.6%. 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 increased its dividend for 4 consecutive years.

Analyst Ratings

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

Dynex Capital currently has a consensus price target of $13.31, indicating a potential upside of 12.20%. Simon Property Group has a consensus price target of $140.22, indicating a potential upside of 0.03%. Given Dynex Capital’s stronger consensus rating and higher possible upside, equities analysts plainly believe Dynex Capital is more favorable than Simon Property Group.

Risk and Volatility

Dynex Capital has a beta of 1.33, indicating that its share price is 33% more volatile than the S&P 500. Comparatively, Simon Property Group has a beta of 1.65, indicating that its share price is 65% more volatile than the S&P 500.

Valuation & Earnings

This table compares Dynex Capital and Simon Property Group’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Dynex Capital	$207.52 million	3.67	-$6.13 million	$1.17	10.14
Simon Property Group	$5.66 billion	8.07	$2.28 billion	$6.98	20.08

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.

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. 1.0% of Dynex Capital shares are held by company insiders. Comparatively, 8.6% of Simon Property Group shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

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.