3 big reasons to buy Westfield Corp Ltd today

As attractive as both companies are, Westfield Corp Ltd (ASX:WFD) seems like a much better investment than Scentre Group Ltd (ASX:SCG).

a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

A controversial restructure of Westfield earlier this year saw the group's global operations divided in two. Westfield Corp Ltd (ASX: WFD) took on the role of owning and managing the group's US and UK assets while Scentre Group Ltd (ASX: SCG) was left in charge of the group's Australian and New Zealand assets.

Although both companies remain attractive at their current prices, here are three reasons why Westfield Corp might be the better buy out of the two.

1)  Falling AUD. Westfield Corp is a great way for investors to gain exposure to the recovering U.S. and U.K. economies as well as the weakening Australian dollar. As Westfield repatriates earnings back to Australia, a lower exchange rate helps boost both the overall earnings and dividend yield. Shareholders of Scentre Group will not directly benefit from this currency movement.

2)  Expansion. Although the United States and United Kingdom are Westfield Corp's primary markets right now, it has plans to expand further through Europe and South America. This could help boost earnings substantially in the future. For instance, it recently announced it would start building its first Italian shopping mall as early as next year in what would be its first significant development outside of the US and UK. Scentre Group is much more limited in regards to geographical expansion.

3)  Management. You should never underestimate the influence a quality management team can have. The Lowy family, who built the Westfield empire from the ground up, remains in charge of Westfield Corp and will play a key role in driving it forward over the coming years. In comparison, the family's stake in Scentre is less than 5% since the restructure went ahead.

Motley Fool contributor Ryan Newman does not own shares in any of the companies mentioned.

More on ⏸️ Investing

Close up of baby looking puzzled
Retail Shares

What has happened to the Baby Bunting (ASX:BBN) share price this year?

It's been a volatile year so far for the Aussie nursery retailer. We take a closer look

Read more »

woman holds sign saying 'we need change' at climate change protest
ETFs

3 ASX ETFs that invest in companies fighting climate change

If you want to shift some of your investments into more ethical companies, exchange-traded funds can offer a good option

Read more »

a jewellery store attendant stands at a cabinet displaying opulent necklaces and earrings featuring diamonds and precious stones.
⏸️ Investing

The Michael Hill (ASX: MHJ) share price poised for growth

Investors will be keeping an eye on the Michael Hill International Limited (ASX: MHJ) share price today. The keen interest…

Read more »

ASX shares buy unstoppable asx share price represented by man in superman cape pointing skyward
⏸️ Investing

The Atomos (ASX:AMS) share price is up 15% in a week

The Atomos (ASX: AMS) share price has surged 15% this week. Let's look at what's ahead as the company build…

Read more »

Two people in suits arm wrestle on a black and white chess board.
Retail Shares

How does the Temple & Webster (ASX:TPW) share price stack up against Nick Scali (ASX:NCK)?

How does the Temple & Webster (ASX: TPW) share price stack up against rival furniture retailer Nick Scali Limited (ASX:…

Read more »

A medical researcher works on a bichip, indicating share price movement in ASX tech companies
Healthcare Shares

The Aroa (ASX:ARX) share price has surged 60% since its IPO

The Aroa (ASX:ARX) share price has surged 60% since the Polynovo (ASX: PNV) competitor listed on the ASX in July.…

Read more »

asx investor daydreaming about US shares
⏸️ How to Invest

How to buy US shares from Australia right now

If you have been wondering how to buy US shares from Australia to gain exposure from the highly topical market,…

Read more »

⏸️ Investing

Why Fox (NASDAQ:FOX) might hurt News Corp (ASX:NWS) shareholders

News Corporation (ASX: NWS) might be facing some existential threats from its American cousins over the riots on 6 January

Read more »