WallStSmart

Phillips Edison & Co Inc (PECO)vsSimon Property Group Inc (SPG)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Simon Property Group Inc generates 776% more annual revenue ($6.36B vs $726.59M). SPG leads profitability with a 72.7% profit margin vs 15.3%. SPG trades at a lower P/E of 12.6x. SPG earns a higher WallStSmart Score of 67/100 (B-).

PECO

Buy

56

out of 100

Grade: C

Growth: 5.3Profit: 6.5Value: 7.0Quality: 4.5
Piotroski: 3/9Altman Z: 0.48

SPG

Strong Buy

67

out of 100

Grade: B-

Growth: 5.3Profit: 9.0Value: 7.3Quality: 4.5
Piotroski: 4/9
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

PECOUndervalued (+9.5%)

Margin of Safety

+9.5%

Fair Value

$41.65

Current Price

$36.83

$4.82 discount

UndervaluedFair: $41.65Overvalued
SPGUndervalued (+70.6%)

Margin of Safety

+70.6%

Fair Value

$663.16

Current Price

$181.57

$481.59 discount

UndervaluedFair: $663.16Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

PECO2 strengths · Avg: 8.0/10
Price/BookValuation
2.0x8/10

Reasonable price relative to book value

Operating MarginProfitability
28.7%8/10

Strong operational efficiency at 28.7%

SPG5 strengths · Avg: 9.4/10
Return on EquityProfitability
104.1%10/10

Every $100 of equity generates 104 in profit

Profit MarginProfitability
72.7%10/10

Keeps 73 of every $100 in revenue as profit

Operating MarginProfitability
49.7%10/10

Strong operational efficiency at 49.7%

Market CapQuality
$57.93B9/10

Large-cap with strong market position

P/E RatioValuation
12.6x8/10

Attractively priced relative to earnings

Areas to Watch

PECO4 concerns · Avg: 3.3/10
EPS GrowthGrowth
1.5%4/10

1.5% earnings growth

Return on EquityProfitability
4.7%3/10

ROE of 4.7% — below average capital efficiency

Debt/EquityHealth
1.093/10

Elevated debt levels

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

SPG3 concerns · Avg: 3.3/10
Price/BookValuation
11.4x4/10

Trading at 11.4x book value

EPS GrowthGrowth
3.6%4/10

3.6% earnings growth

PEG RatioValuation
8.742/10

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

Bull Case : PECO

The strongest argument for PECO centers on Price/Book, Operating Margin. Profitability is solid with margins at 15.3% and operating margin at 28.7%.

Bull Case : SPG

The strongest argument for SPG centers on Return on Equity, Profit Margin, Operating Margin. Profitability is solid with margins at 72.7% and operating margin at 49.7%. Revenue growth of 13.2% demonstrates continued momentum.

Bear Case : PECO

The primary concerns for PECO are EPS Growth, Return on Equity, Debt/Equity. A P/E of 41.4x leaves little room for execution misses.

Bear Case : SPG

The primary concerns for SPG are Price/Book, EPS Growth, PEG Ratio.

Key Dynamics to Monitor

SPG carries more volatility with a beta of 1.40 — expect wider price swings.

SPG is growing revenue faster at 13.2% — sustainability is the question.

SPG generates stronger free cash flow (982M), providing more financial flexibility.

Monitor REIT - RETAIL industry trends, competitive dynamics, and regulatory changes.

Bottom Line

SPG scores higher overall (67/100 vs 56/100), backed by strong 72.7% margins and 13.2% revenue growth. Both earn "Strong Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Phillips Edison & Co Inc

REAL ESTATE · REIT - RETAIL · USA

Phillips Edison & Company, Inc. (PECO) is a leading fully integrated real estate investment trust (REIT) that focuses on the ownership, operation, and development of grocery-anchored shopping centers across the United States. With a diverse portfolio of over 300 strategically positioned properties, PECO leverages favorable demographic trends and strong consumer preferences to drive value creation. The company is dedicated to building robust relationships with national and regional retailers, enhancing tenant stability and fostering sustainable cash flow growth. Committed to delivering long-term shareholder value, PECO emphasizes disciplined capital management and sustainability initiatives in its operational strategies.

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Simon Property Group Inc

REAL ESTATE · REIT - RETAIL · USA

Simon Property Group, Inc. is a real estate investment trust that invests in shopping malls, outlet centers, and community/lifestyle centers. It is the largest owner of shopping malls in the United States and is headquartered in Indianapolis, Indiana.

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