Head to Head Analysis: New Senior Investment Group (SNR) and Simon Property Group (SPG)

New Senior Investment Group (NYSE:SNR) and Simon Property Group (NYSE:SPG) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, profitability, dividends, analyst recommendations, valuation and institutional ownership.

Insider & Institutional Ownership

65.5% of New Senior Investment Group shares are held by institutional investors. Comparatively, 96.7% of Simon Property Group shares are held by institutional investors. 1.4% of New Senior Investment Group shares are held by insiders. Comparatively, 8.8% of Simon Property Group shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Dividends

New Senior Investment Group pays an annual dividend of $0.52 per share and has a dividend yield of 9.9%. Simon Property Group pays an annual dividend of $8.20 per share and has a dividend yield of 4.7%. New Senior Investment Group pays out 91.2% 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 67.6% of its earnings in the form of a dividend. Simon Property Group has increased its dividend for 9 consecutive years.

Analyst Recommendations

This is a summary of recent ratings and price targets for New Senior Investment Group and Simon Property Group, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
New Senior Investment Group 0 2 0 0 2.00
Simon Property Group 0 6 8 0 2.57

New Senior Investment Group presently has a consensus target price of $5.00, indicating a potential downside of 4.40%. Simon Property Group has a consensus target price of $195.21, indicating a potential upside of 12.38%. Given Simon Property Group’s stronger consensus rating and higher possible upside, analysts clearly believe Simon Property Group is more favorable than New Senior Investment Group.

Valuation & Earnings

This table compares New Senior Investment Group and Simon Property Group’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
New Senior Investment Group $444.30 million 0.97 -$159.35 million $0.57 9.18
Simon Property Group $5.66 billion 9.49 $2.44 billion $12.13 14.32

Simon Property Group has higher revenue and earnings than New Senior Investment Group. New Senior Investment Group 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.

Volatility and Risk

New Senior Investment Group has a beta of 1, suggesting that its stock price has a similar volatility profile to the S&P 500.Comparatively, Simon Property Group has a beta of 0.57, suggesting that its stock price is 43% less volatile than the S&P 500.

Profitability

This table compares New Senior Investment Group and Simon Property Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
New Senior Investment Group -35.87% -41.28% -6.65%
Simon Property Group 43.11% 63.21% 7.89%

Summary

Simon Property Group beats New Senior Investment Group on 15 of the 17 factors compared between the two stocks.

New Senior Investment Group Company Profile

New Senior Investment Group Inc. (NYSE: SNR) is a publicly-traded real estate investment trust with a diversified portfolio of senior housing properties located across the United States. As of December 31, 2018, New Senior is one of the largest owners of senior housing properties, with 133 properties across 37 states.

Simon Property Group Company Profile

Simon is a global leader 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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