Regency Centers (NYSE: REG) and Tanger Factory Outlet Centers (NYSE:SKT) are both mid-cap financials companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, profitability, risk, earnings, institutional ownership, analyst recommendations and dividends.

Insider and Institutional Ownership

92.5% of Regency Centers shares are owned by institutional investors. Comparatively, 95.3% of Tanger Factory Outlet Centers shares are owned by institutional investors. 12.7% of Regency Centers 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, endowments and large money managers believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Regency Centers and Tanger Factory Outlet Centers’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Regency Centers $614.37 million 18.77 $164.92 million $0.90 75.32
Tanger Factory Outlet Centers $465.83 million 5.07 $193.74 million $0.62 40.31

Tanger Factory Outlet Centers has lower revenue, but higher earnings than Regency Centers. Tanger Factory Outlet Centers is trading at a lower price-to-earnings ratio than Regency Centers, indicating that it is currently the more affordable of the two stocks.

Profitability

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

Net Margins Return on Equity Return on Assets
Regency Centers 17.59% 2.82% 1.65%
Tanger Factory Outlet Centers 12.34% 8.98% 2.37%

Dividends

Regency Centers pays an annual dividend of $2.12 per share and has a dividend yield of 3.1%. Tanger Factory Outlet Centers pays an annual dividend of $1.37 per share and has a dividend yield of 5.5%. Regency Centers pays out 235.6% 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 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. Regency Centers has raised its dividend for 24 consecutive years and Tanger Factory Outlet Centers has raised its dividend for 3 consecutive years. Tanger Factory Outlet Centers is clearly the better dividend stock, given its higher yield and lower payout ratio.

Volatility and Risk

Regency Centers has a beta of 0.58, meaning that its stock price is 42% less volatile than the S&P 500. Comparatively, Tanger Factory Outlet Centers has a beta of 0.52, meaning that its stock price is 48% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and target prices for Regency Centers and Tanger Factory Outlet Centers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Regency Centers 0 6 3 1 2.50
Tanger Factory Outlet Centers 1 4 1 0 2.00

Regency Centers presently has a consensus price target of $70.17, indicating a potential upside of 3.51%. Tanger Factory Outlet Centers has a consensus price target of $25.38, indicating a potential upside of 1.54%. Given Regency Centers’ stronger consensus rating and higher possible upside, analysts clearly believe Regency Centers is more favorable than Tanger Factory Outlet Centers.

Summary

Regency Centers beats Tanger Factory Outlet Centers on 12 of the 18 factors compared between the two stocks.

Regency Centers Company Profile

Regency Centers Corporation is a real estate investment trust (REIT). The Company is the general partner of Regency Centers, L.P. (the Operating Partnership). The Company is engaged in the ownership, management, leasing, acquisition and development of retail shopping centers through the Operating Partnership. The Company’s properties include Palm Valley Marketplace, Shops at Arizona, Amerige Heights Town Center, Clayton Valley Shopping Center, Five Points Shopping Center, French Valley Village Center, Hasley Canyon Village, Pleasant Hill Shopping Center, Snell & Branham Plaza, Applewood Shopping Center, Kent Place, Black Rock, Spring Valley Shopping Center and Pebblebrook Plaza. As of December 31, 2016, the Company owned all of the Preferred Units of the Operating Partnership and approximately 99.9% of the Units in the Operating Partnership. As of December 31, 2016, it owned direct or partial interests in 307 shopping centers.

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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