Ventas (NYSE:VTR) vs. Simon Property Group (NYSE:SPG) Critical Comparison

Simon Property Group (NYSE:SPG) and Ventas (NYSE:VTR) are both large-cap finance companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, risk, valuation, dividends, profitability, analyst recommendations and institutional ownership.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Simon Property Group	41.49%	74.02%	7.46%
Ventas	1.65%	0.82%	0.32%

Valuation & Earnings

This table compares Simon Property Group and Ventas”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Simon Property Group	$5.96 billion	8.10	$2.37 billion	$7.26	20.38
Ventas	$4.92 billion	5.87	$81.15 million	$0.19	347.58

Simon Property Group has higher revenue and earnings than Ventas. Simon Property Group is trading at a lower price-to-earnings ratio than Ventas, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Simon Property Group has a beta of 1.45, suggesting that its share price is 45% more volatile than the S&P 500. Comparatively, Ventas has a beta of 1.02, suggesting that its share price is 2% more volatile than the S&P 500.

Dividends

Simon Property Group pays an annual dividend of $8.40 per share and has a dividend yield of 5.7%. Ventas pays an annual dividend of $1.92 per share and has a dividend yield of 2.9%. Simon Property Group pays out 115.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Ventas pays out 1,010.5% 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 is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Simon Property Group and Ventas, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Simon Property Group	0	4	5	0	2.56
Ventas	0	3	7	2	2.92

Simon Property Group presently has a consensus price target of $181.39, indicating a potential upside of 22.58%. Ventas has a consensus price target of $72.90, indicating a potential upside of 10.39%. Given Simon Property Group’s higher possible upside, research analysts plainly believe Simon Property Group is more favorable than Ventas.

Institutional and Insider Ownership

93.0% of Simon Property Group shares are held by institutional investors. Comparatively, 94.2% of Ventas shares are held by institutional investors. 8.5% of Simon Property Group shares are held by company insiders. Comparatively, 1.0% of Ventas shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Simon Property Group beats Ventas on 12 of the 17 factors compared between the two stocks.

About Simon Property Group

Simon Property Group, Inc. (NYSE:SPG) is a self-administered and self-managed real estate investment trust (REIT). Simon Property Group, L.P., or the Operating Partnership, is our majority-owned partnership subsidiary that owns all of our real estate properties and other assets. In this package, the terms Simon, we, our, or the Company refer to Simon Property Group, Inc., the Operating Partnership, and its subsidiaries. We own, develop and manage premier shopping, dining, entertainment and mixed-use destinations, which consist primarily of malls, Premium Outlets, The Mills, and International Properties. At June 30, 2024, we owned or had an interest in 230 properties comprising 183 million square feet in North America, Asia and Europe. We also owned an 84% interest in The Taubman Realty Group, or TRG, which owns 22 regional, super-regional, and outlet malls in the U.S. and Asia. Additionally, at June 30, 2024, we had a 22.4% ownership interest in Klépierre, a publicly traded, Paris-based real estate company, which owns shopping centers in 14 European countries.

About Ventas

Ventas Inc. (NYSE: VTR) is a leading S&P 500 real estate investment trust focused on delivering strong, sustainable shareholder returns by enabling exceptional environments that benefit a large and growing aging population. The Company's growth is fueled by its senior housing communities, which provide valuable services to residents and enable them to thrive in supported environments. Ventas leverages its unmatched operational expertise, data-driven insights from its Ventas Operational InsightsTM platform, extensive relationships and strong financial position to achieve its goal of delivering outsized performance across approximately 1,400 properties. The Ventas portfolio is composed of senior housing communities, outpatient medical buildings, research centers and healthcare facilities in North America and the United Kingdom. The Company benefits from a seasoned team of talented professionals who share a commitment to excellence, integrity and a common purpose of helping people live longer, healthier, happier lives.