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

Profitability

This table compares Tanger Factory Outlet Centers and Getty Realty Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Tanger Factory Outlet Centers 29.65% 20.75% 5.66%
Getty Realty Corporation 36.66% 9.62% 4.89%

Volatility and Risk

Tanger Factory Outlet Centers has a beta of 0.49, indicating that its share price is 51% less volatile than the S&P 500. Comparatively, Getty Realty Corporation has a beta of 0.55, indicating that its share price is 45% less volatile than the S&P 500.

Institutional and Insider Ownership

97.2% of Tanger Factory Outlet Centers shares are owned by institutional investors. Comparatively, 50.8% of Getty Realty Corporation shares are owned by institutional investors. 4.8% of Tanger Factory Outlet Centers shares are owned by company insiders. Comparatively, 22.3% of Getty Realty Corporation shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Dividends

Tanger Factory Outlet Centers pays an annual dividend of $1.37 per share and has a dividend yield of 5.9%. Getty Realty Corporation pays an annual dividend of $1.12 per share and has a dividend yield of 4.0%. Tanger Factory Outlet Centers pays out 90.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Getty Realty Corporation pays out 94.1% 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 increased its dividend for 4 consecutive years and Getty Realty Corporation has increased its dividend for 24 consecutive years. Tanger Factory Outlet Centers is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Tanger Factory Outlet Centers and Getty Realty Corporation, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Tanger Factory Outlet Centers 2 3 2 0 2.00
Getty Realty Corporation 1 0 2 0 2.33

Tanger Factory Outlet Centers presently has a consensus price target of $27.38, suggesting a potential upside of 18.10%. Getty Realty Corporation has a consensus price target of $27.33, suggesting a potential downside of 2.90%. Given Tanger Factory Outlet Centers’ higher possible upside, equities research analysts clearly believe Tanger Factory Outlet Centers is more favorable than Getty Realty Corporation.

Earnings and Valuation

This table compares Tanger Factory Outlet Centers and Getty Realty Corporation’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Tanger Factory Outlet Centers $493.28 million 4.47 $276.68 million $1.51 15.35
Getty Realty Corporation $114.91 million 9.65 $78.24 million $1.19 23.66

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

Summary

Tanger Factory Outlet Centers beats Getty Realty Corporation on 9 of the 16 factors compared between the two stocks.

About Tanger Factory Outlet Centers

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.

About Getty Realty Corporation

Getty Realty Corp. is a real estate investment trust (REIT). The Company specializes in the ownership, leasing and financing of convenience store and gasoline station properties. As of June 30, 2017, the Company’s 825 properties were located in 26 states across the United States and Washington, District of Columbia. Its properties are operated under a range of brands, including 76, Aloha, BP, Citgo, Conoco, Exxon, Getty, Mobil, RaceTrac, Shell and Valero. The Company owns the Getty name in connection with its real estate and the petroleum marketing business in the United States. As of June 30, 2017, the Company had owned 738 properties and leased 87 properties from third-party landlords. Its typical property is used as a convenience store and gasoline station. Its properties are concentrated in the Northeast and Mid-Atlantic regions.

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