Cedar Realty Trust (NYSE: CDR) and Tanger Factory Outlet Centers (NYSE:SKT) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, valuation, analyst recommendations, risk, profitability, institutional ownership and earnings.

Dividends

Cedar Realty Trust pays an annual dividend of $0.20 per share and has a dividend yield of 3.7%. Tanger Factory Outlet Centers pays an annual dividend of $1.37 per share and has a dividend yield of 5.5%. Cedar Realty Trust pays out -285.7% of its earnings in the form of a dividend. Tanger Factory Outlet Centers pays out 221.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Cedar Realty Trust has raised its dividend for 25 consecutive years.

Insider and Institutional Ownership

92.6% of Cedar Realty Trust shares are owned by institutional investors. 4.5% of Cedar Realty Trust shares are owned by company insiders. Comparatively, 4.8% of Tanger Factory Outlet Centers shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of recent recommendations and price targets for Cedar Realty Trust and Tanger Factory Outlet Centers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cedar Realty Trust 1 2 3 0 2.33
Tanger Factory Outlet Centers 1 4 1 0 2.00

Cedar Realty Trust currently has a consensus price target of $5.75, indicating a potential upside of 5.89%. Tanger Factory Outlet Centers has a consensus price target of $24.88, indicating a potential downside of 0.66%. Given Cedar Realty Trust’s stronger consensus rating and higher possible upside, analysts clearly believe Cedar Realty Trust is more favorable than Tanger Factory Outlet Centers.

Profitability

This table compares Cedar Realty Trust and Tanger Factory Outlet Centers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cedar Realty Trust 11.42% 4.18% 1.34%
Tanger Factory Outlet Centers -8.40% -10.33% -1.60%

Volatility & Risk

Cedar Realty Trust has a beta of 0.96, suggesting that its stock price is 4% less volatile than the S&P 500. Comparatively, Tanger Factory Outlet Centers has a beta of 0.52, suggesting that its stock price is 48% less volatile than the S&P 500.

Valuation & Earnings

This table compares Cedar Realty Trust and Tanger Factory Outlet Centers’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cedar Realty Trust $151.09 million 3.28 $8.94 million ($0.07) -77.57
Tanger Factory Outlet Centers $465.83 million 5.08 $193.74 million $0.62 40.39

Tanger Factory Outlet Centers has higher revenue and earnings than Cedar Realty Trust. Cedar Realty Trust 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.

Summary

Cedar Realty Trust beats Tanger Factory Outlet Centers on 10 of the 17 factors compared between the two stocks.

Cedar Realty Trust Company Profile

Cedar Realty Trust, Inc. is a real estate investment trust (REIT). The Company focuses on ownership and operation of grocery-anchored shopping centers straddling the Washington District of Columbia (DC) to Boston corridor. As of December 31, 2016, the Company owned and managed a portfolio of 61 operating properties (excluding properties held for sale) totaling approximately 9.1 million square feet of gross leasable area (GLA). The Company focuses its investment activities on grocery-anchored shopping centers. The Company’s properties portfolio comprises 26 properties in Pennsylvania, eight properties in Massachusetts, seven properties in Connecticut, seven properties in Maryland / Washington, D.C, eight properties in Virginia, four properties in New Jersey and one property in New York. The Company’s 106 are going to expire in the year 2017. The Company conducts all of its businesses through the Cedar Realty Trust Partnership L.P. (the Operating Partnership).

Tanger Factory Outlet Centers Company Profile

Tanger Factory Outlet Centers, Inc. is an owner and operator of outlet centers in the United States and Canada. The Company is a fully-integrated, self-administered and self-managed real estate investment trust (REIT), which focuses on developing, acquiring, owning, operating and managing outlet shopping centers. As of December 31, 2016, its portfolio consisted of 36 outlet centers, with a total gross leasable area of approximately 12.7 million square feet, which were 98% occupied and contained over 2,600 stores representing approximately 400 store brands. Its outlet centers and other assets are held by, and all of its operations are conducted by, Tanger Properties Limited Partnership and subsidiaries (Operating Partnership). The Company owns the majority of the units of partnership interest issued by the Operating Partnership, through its subsidiaries, Tanger GP Trust and Tanger LP Trust. Tanger GP Trust controls the Operating Partnership as its sole general partner.

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