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How Has Taubman Centers Performed in a Competitive Market?

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Taubman Centers and its peers

In this article, we’ll compare Taubman Centers (TCO) to its industry peers:

  • The PBV (price-to-book value) ratios of Taubman Centers, Simon Property Group (SPG), General Growth Properties (GGP), and Macerich (MAC) are 29.90x, 14.35x, 3.13x, and 2.44x, respectively.

  • The PS (price-to-sales) ratios of Taubman, Simon Property, General Growth, and Macerich are 7.95x, 12.35x, 10.30x, and 10.89x, respectively.

According to the above findings, Taubman’s peers have outperformed it based on PS. However, Taubman is ahead of its peers based on PBV.

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ETFs that invest in Taubman

The PowerShares Active US Real Estate ETF (PSR) invests 2.1% of its holdings in Taubman. The ETF is an actively managed fund. Fund managers select US REITs in an attempt to outperform the market.

The iShares Cohen & Steers Realty Majors ETF (ICF) invests 1.1% of its holdings in Taubman. The ETF tracks an index of 30 large-cap REITs selected by a committee.

The Schwab US REIT ETF (SCHH) invests 0.85% of its holdings in Taubman. The ETF tracks a market-cap–weighted index of real estate investment trusts, excluding mortgage REITs and companies involved in real estate finance.

Taubman Centers and its ETFs compared

An analysis of Taubman and its ETFs is as follows:

  • The year-to-date price movements of Taubman, PSR, ICF, and SCHH are 1.7%, -0.15%, 4.2%, and 3.7%, respectively.
  • The PBV (price-to-book value) ratios of Taubman, PSR, ICF, and SCHH are 29.90x, 2.56x, 2.54x, and 2.36x, respectively.

According to the above findings, the ETFs have outperformed Taubman based on price movement. However, Taubman is ahead of its ETFs based on PBV.

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