3 big reasons to buy Westfield Corp Ltd today

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.

An even better bet than Westfield

As attractive as Westfield Corp is, it's by no means the most compelling stock on the ASX right now - even with the S&P/ASX 200 (INDEXASX: XJO) trading near a six-year high. Instead, don't miss what could be the 'story stock' of 2014! Get The Motley Fool's #1 pick now in our newly updated investment report. It's yours FREE. Simply click here for your copy of "The Motley Fool's Top Stock for 2014."

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

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