Contrasting HG (OTCMKTS:STLY) & Simon Property Group (NYSE:SPG)

HG (OTCMKTS:STLY) and Simon Property Group (NYSE:SPG) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, dividends, profitability, earnings, analyst recommendations, risk and institutional ownership.

Risk and Volatility

HG has a beta of 0.49, suggesting that its share price is 51% less volatile than the S&P 500. Comparatively, Simon Property Group has a beta of 1.43, suggesting that its share price is 43% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
HG	-3.70%	-1.31%	-0.92%
Simon Property Group	41.49%	74.02%	7.46%

Analyst Ratings

This is a summary of recent ratings and recommmendations for HG and Simon Property Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
HG	0	0	0	0	0.00
Simon Property Group	0	4	5	0	2.56

Simon Property Group has a consensus price target of $179.67, suggesting a potential upside of 10.29%. Given Simon Property Group’s stronger consensus rating and higher probable upside, analysts clearly believe Simon Property Group is more favorable than HG.

Valuation & Earnings

This table compares HG 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
HG	$11.11 million	1.29	-$820,000.00	($0.08)	-62.50
Simon Property Group	$5.96 billion	8.91	$2.37 billion	$7.26	22.44

Simon Property Group has higher revenue and earnings than HG. HG 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.

Insider and Institutional Ownership

1.7% of HG shares are held by institutional investors. Comparatively, 93.0% of Simon Property Group shares are held by institutional investors. 36.1% of HG shares are held by company insiders. Comparatively, 8.7% of Simon Property Group shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

Simon Property Group beats HG on 13 of the 14 factors compared between the two stocks.

About HG

HG Holdings, Inc. engages in the title insurance and real estate businesses in the United States. It operates through four segments: Title Insurance Services, Reinsurance, Management Services, and Real Estate. The company provides title insurance, closing and/or escrow, and similar or related services in connection with residential and commercial real estate transactions. It also owns and operates a portfolio of single-tenant properties leased for the occupancy by U.S. government tenant agencies and sub-agencies, such as the Federal Bureau of Investigation, the Department of Veterans affairs, the Drug Enforcement Administration, Immigration & Customs Enforcement, the Social Security Administration, and the Department of Transportation. In addition, the company provides excess-of-loss reinsurance coverage related to catastrophic weather risk in Texas; and management advisory services, such as formation, operational, and restructuring services. The company was formerly known as Stanley Furniture Company, Inc. and changed its name to HG Holdings, Inc. in March 2018. HG Holdings, Inc. was incorporated in 1984 and is headquartered in Charlotte, North Carolina.

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.