Tanger Factory Outlet Centers (NYSE:SKT – Get Rating) and EastGroup Properties (NYSE:EGP – Get Rating) are both finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, earnings, risk, analyst recommendations, profitability, dividends and valuation.
Volatility & Risk
Tanger Factory Outlet Centers has a beta of 1.86, indicating that its share price is 86% more volatile than the S&P 500. Comparatively, EastGroup Properties has a beta of 0.86, indicating that its share price is 14% less volatile than the S&P 500.
Earnings & Valuation
This table compares Tanger Factory Outlet Centers and EastGroup Properties’ revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Tanger Factory Outlet Centers | $426.52 million | 4.27 | $9.12 million | $0.07 | 249.04 |
| EastGroup Properties | $409.48 million | 20.06 | $157.56 million | $3.89 | 51.20 |
EastGroup Properties has lower revenue, but higher earnings than Tanger Factory Outlet Centers. EastGroup Properties is trading at a lower price-to-earnings ratio than Tanger Factory Outlet Centers, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of current recommendations and price targets for Tanger Factory Outlet Centers and EastGroup Properties, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Tanger Factory Outlet Centers | 1 | 0 | 1 | 0 | 2.00 |
| EastGroup Properties | 0 | 7 | 2 | 0 | 2.22 |
Tanger Factory Outlet Centers currently has a consensus price target of $15.00, indicating a potential downside of 13.94%. EastGroup Properties has a consensus price target of $206.63, indicating a potential upside of 3.75%. Given EastGroup Properties’ stronger consensus rating and higher probable upside, analysts plainly believe EastGroup Properties is more favorable than Tanger Factory Outlet Centers.
Dividends
Tanger Factory Outlet Centers pays an annual dividend of $0.73 per share and has a dividend yield of 4.2%. EastGroup Properties pays an annual dividend of $4.40 per share and has a dividend yield of 2.2%. Tanger Factory Outlet Centers pays out 1,043.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. EastGroup Properties pays out 113.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Tanger Factory Outlet Centers has raised its dividend for 1 consecutive years and EastGroup Properties has raised its dividend for 11 consecutive years.
Insider & Institutional Ownership
79.0% of Tanger Factory Outlet Centers shares are owned by institutional investors. Comparatively, 93.6% of EastGroup Properties shares are owned by institutional investors. 5.8% of Tanger Factory Outlet Centers shares are owned by company insiders. Comparatively, 1.6% of EastGroup Properties shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Profitability
This table compares Tanger Factory Outlet Centers and EastGroup Properties’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Tanger Factory Outlet Centers | 2.11% | 1.82% | 0.41% |
| EastGroup Properties | 38.48% | 11.09% | 5.34% |
Summary
EastGroup Properties beats Tanger Factory Outlet Centers on 12 of the 17 factors compared between the two stocks.
About Tanger Factory Outlet Centers (Get Rating)
Tanger Factory Outlet Centers, Inc. (NYSE: SKT) is a leading operator of open-air upscale outlet shopping centers that owns, or has an ownership interest in, a portfolio of 38 centers. Tanger’s operating properties are located in 20 states and in Canada, totaling approximately 14.1 million square feet, leased to over 2,700 stores operated by more than 500 different brand name companies. The Company has more than 39 years of experience in the outlet industry and is a publicly-traded REIT. Tanger is furnishing a Form 8-K with the Securities and Exchange Commission (“SEC”) that includes a supplemental information package for the quarter ended September 30, 2020.
About EastGroup Properties (Get Rating)
EastGroup Properties, Inc. (NYSE: EGP), an S&P MidCap 400 company, is a self-administered equity real estate investment trust focused on the development, acquisition and operation of industrial properties in major Sunbelt markets throughout the United States with an emphasis in the states of Florida, Texas, Arizona, California and North Carolina. The Company’s goal is to maximize shareholder value by being a leading provider in its markets of functional, flexible and quality business distribution space for location sensitive customers (primarily in the 15,000 to 70,000 square foot range). The Company’s strategy for growth is based on ownership of premier distribution facilities generally clustered near major transportation features in supply-constrained submarkets. EastGroup’s portfolio, including development projects and value-add acquisitions in lease-up and under construction, currently includes approximately 45.8 million square feet.
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