Head-To-Head Survey: Scentre Group (OTCMKTS:STGPF) versus Urban Edge Properties (NYSE:UE)

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

Earnings & Valuation

This table compares Urban Edge Properties and Scentre Group”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Urban Edge Properties	$471.93 million	5.77	$93.54 million	$0.86	25.11
Scentre Group	N/A	N/A	N/A	$0.26	12.07

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

Insider and Institutional Ownership

94.9% of Urban Edge Properties shares are owned by institutional investors. Comparatively, 67.9% of Scentre Group shares are owned by institutional investors. 2.7% of Urban Edge Properties shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Urban Edge Properties and Scentre Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Urban Edge Properties	0	4	2	0	2.33
Scentre Group	0	0	0	0	0.00

Urban Edge Properties presently has a consensus target price of $23.20, indicating a potential upside of 7.43%. Given Urban Edge Properties’ stronger consensus rating and higher possible upside, equities research analysts plainly believe Urban Edge Properties is more favorable than Scentre Group.

Profitability

This table compares Urban Edge Properties and Scentre Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Urban Edge Properties	22.20%	7.80%	3.24%
Scentre Group	N/A	N/A	N/A

Dividends

Urban Edge Properties pays an annual dividend of $0.84 per share and has a dividend yield of 3.9%. Scentre Group pays an annual dividend of $0.19 per share and has a dividend yield of 6.3%. Urban Edge Properties pays out 97.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. 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. Urban Edge Properties has increased its dividend for 2 consecutive years. Scentre Group is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Urban Edge Properties beats Scentre Group on 12 of the 14 factors compared between the two stocks.

About Urban Edge Properties

Urban Edge Properties is a NYSE listed real estate investment trust focused on owning, managing, acquiring, developing, and redeveloping retail real estate in urban communities, primarily in the Washington, D.C. to Boston corridor. Urban Edge owns 76 properties totaling 17.1 million square feet of gross leasable area.

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.