Scentre Group (OTCMKTS:STGPF) and Kite Realty Group Trust (NYSE:KRG) Critical Review

Scentre Group (OTCMKTS:STGPF) and Kite Realty Group Trust (NYSE:KRG) are both real estate companies, but which is the better investment? We will compare the two companies based on the strength of their profitability, institutional ownership, analyst recommendations, dividends, risk, earnings and valuation.

Dividends

Scentre Group pays an annual dividend of $0.19 per share and has a dividend yield of 8.0%. Kite Realty Group Trust pays an annual dividend of $1.04 per share and has a dividend yield of 4.0%. Scentre Group pays out 75.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Kite Realty Group Trust pays out 400.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Scentre Group is clearly the better dividend stock, given its higher yield and lower payout ratio.

Insider and Institutional Ownership

67.9% of Scentre Group shares are held by institutional investors. Comparatively, 90.8% of Kite Realty Group Trust shares are held by institutional investors. 2.0% of Kite Realty Group Trust shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Scentre Group and Kite Realty Group Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Scentre Group	N/A	N/A	N/A
Kite Realty Group Trust	-2.95%	-0.69%	-0.35%

Valuation & Earnings

This table compares Scentre Group and Kite Realty Group Trust’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Scentre Group	N/A	N/A	N/A	$0.26	9.46
Kite Realty Group Trust	$827.37 million	6.91	$47.50 million	$0.26	100.08

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

Analyst Ratings

This is a summary of recent recommendations and price targets for Scentre Group and Kite Realty Group Trust, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Scentre Group	0	0	0	0	N/A
Kite Realty Group Trust	0	2	3	1	2.83

Kite Realty Group Trust has a consensus price target of $26.83, suggesting a potential upside of 3.13%. Given Kite Realty Group Trust’s higher possible upside, analysts plainly believe Kite Realty Group Trust is more favorable than Scentre Group.

Summary

Kite Realty Group Trust beats Scentre Group on 8 of the 13 factors compared between the two stocks.

About Scentre Group

Scentre Group owns and operates a leading portfolio of 42 Westfield destinations with 37 located in Australia and five in New Zealand encompassing more than 12,000 outlets. Our Westfield destinations are strategically located in the heart of the local communities we serve. Our centres are considered community hubs that connect people with services and experiences that enrich their daily lives. The Trust has a joint interest in 39 Westfield destinations.

About Kite Realty Group Trust

Kite Realty Group Trust (NYSE: KRG) is a real estate investment trust (REIT) headquartered in Indianapolis, IN that is one of the largest publicly traded owners and operators of open-air shopping centers and mixed-use assets. The Company’s primarily grocery-anchored portfolio is located in high-growth Sun Belt and select strategic gateway markets. The combination of necessity-based grocery-anchored neighborhood and community centers, along with vibrant mixed-use assets makes the KRG portfolio an ideal mix for both retailers and consumers. Publicly listed since 2004, KRG has nearly 60 years of experience in developing, constructing and operating real estate. Using operational, investment, development, and redevelopment expertise, KRG continuously optimizes its portfolio to maximize value and return to shareholders. As of December 31, 2023, the Company owned interests in 180 U.S. open-air shopping centers and mixed-use assets, comprising approximately 28.1 million square feet of gross leasable space.