Dynex Capital (NYSE:DX – Get Free Report) and Simon Property Group (NYSE:SPG – Get Free Report) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their risk, valuation, institutional ownership, earnings, analyst recommendations, dividends and profitability.
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 increased its dividend for 4 consecutive years.
Earnings and Valuation
This table compares Dynex Capital and Simon Property Group’s revenue, earnings per share and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Dynex Capital | $207.52 million | 3.73 | -$6.13 million | $1.17 | 10.32 |
Simon Property Group | $5.66 billion | 8.23 | $2.28 billion | $6.98 | 20.48 |
Volatility and Risk
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.
Analyst Recommendations
This is a summary of current ratings and target prices for Dynex Capital and Simon Property Group, as provided 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, suggesting a potential upside of 10.20%. Simon Property Group has a consensus price target of $140.22, suggesting a potential downside of 1.89%. Given Dynex Capital’s stronger consensus rating and higher possible upside, analysts plainly believe Dynex Capital is more favorable than Simon Property Group.
Institutional & Insider 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 company insiders. Comparatively, 8.5% of Simon Property Group shares are held by company 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.
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% |
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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