Evaluating REA and SCG: A Quick Look at These ASX200 Stocks' Valuation Signals

June 26, 2025 01:32 PM AEST | By Team Kalkine Media

Evaluating REA and SCG: A Quick Look at These ASX200 Stocks' Valuation Signals — Image source: Shutterstock

Scentre Group (ASX:SCG): A Retail Real Estate Giant

Scentre Group, operating the well-known Westfield shopping centres across Australia and New Zealand, holds a robust portfolio of 42 properties worth over $34 billion. These centres attract more than 500 million visitors annually and maintain an occupancy rate exceeding 99%.

With locations in high-traffic retail corridors and a tenant mix spanning fashion, dining, leisure, and entertainment, SCG has consistently built value through long-term leasing strategies. One way to assess the valuation of a property-focused entity like SCG is through its dividend yield. Currently, the group offers a yield of approximately 4.71%, slightly under its 5-year average of 4.78%. This reflects a steady income-generating profile, and interestingly, the latest annual dividend was higher than the 3-year average—indicating a growing payout stream.

REA Group Ltd (ASX:REA): Digital Real Estate Leader

REA Group is the digital heavyweight behind realestate.com.au and operates in about 10 countries. While the business has expanded globally, the core Australian market still generates the bulk of its revenue. The company’s reach—55 million monthly visits across platforms—combined with its comprehensive offerings in listings, advertising, and even financial services like mortgage broking, strengthens its overall ecosystem.

REA stands out due to its network effects and dominant market position. A useful lens for assessing REA’s valuation is its price-to-sales ratio. At present, it sits at 18.23x, higher than its 5-year average of 17.41x. This suggests a premium valuation, often associated with high-growth potential.

Final Thoughts

Both SCG and REA represent contrasting yet compelling segments of the property sector. SCG’s real estate footprint and income reliability contrast with REA’s digital scale and pricing power. When analysing the ASX300 index like these, simple metrics such as dividend yield and price-sales ratio can offer meaningful insights into performance relative to historical benchmarks.

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.