Head-To-Head Comparison: Tanger (NYSE:SKT) and NETSTREIT (NYSE:NTST)

Tanger (NYSE:SKT) and NETSTREIT (NYSE:NTST) are both real estate companies, but which is the better investment? We will compare the two companies based on the strength of their valuation, institutional ownership, profitability, earnings, dividends, risk and analyst recommendations.

Valuation & Earnings

This table compares Tanger and NETSTREIT”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tanger	$581.56 million	6.97	$114.78 million	$1.10	32.09
NETSTREIT	$195.01 million	8.58	$6.90 million	$0.15	109.84

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

Volatility and Risk

Tanger has a beta of 1.12, indicating that its share price is 12% more volatile than the S&P 500. Comparatively, NETSTREIT has a beta of 0.8, indicating that its share price is 20% less volatile than the S&P 500.

Dividends

Tanger pays an annual dividend of $1.25 per share and has a dividend yield of 3.5%. NETSTREIT pays an annual dividend of $0.90 per share and has a dividend yield of 5.5%. Tanger pays out 113.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. NETSTREIT pays out 600.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Tanger has increased its dividend for 4 consecutive years and NETSTREIT has increased its dividend for 1 consecutive years.

Profitability

This table compares Tanger and NETSTREIT’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tanger	20.74%	17.72%	4.62%
NETSTREIT	6.35%	0.95%	0.51%

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Tanger and NETSTREIT, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tanger	1	7	2	0	2.10
NETSTREIT	0	2	12	0	2.86

Tanger currently has a consensus target price of $40.17, indicating a potential upside of 13.80%. NETSTREIT has a consensus target price of $22.46, indicating a potential upside of 36.31%. Given NETSTREIT’s stronger consensus rating and higher probable upside, analysts clearly believe NETSTREIT is more favorable than Tanger.

Insider & Institutional Ownership

85.2% of Tanger shares are owned by institutional investors. 3.2% of Tanger shares are owned by insiders. Comparatively, 0.7% of NETSTREIT shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Tanger beats NETSTREIT on 11 of the 17 factors compared between the two stocks.

About Tanger

Tanger Inc. (NYSE: SKT) is a leading owner and operator of outlet and open-air retail shopping destinations, with over 43 years of expertise in the retail and outlet shopping industries. Tanger’s portfolio of 38 outlet centers, one adjacent managed center and one open-air lifestyle center comprises over 15 million square feet well positioned across tourist destinations and vibrant markets in 20 U.S. states and Canada. A publicly traded REIT since 1993, Tanger continues to innovate the retail experience for its shoppers with over 3,000 stores operated by more than 700 different brand name companies. Tanger is furnishing a Form 8-K with the Securities and Exchange Commission (“SEC”) that includes a supplemental information package for the quarter and year ended December 31, 2023.

About NETSTREIT

NETSTREIT Corp. is an internally managed real estate investment trust (REIT) based in Dallas, Texas that specializes in acquiring single-tenant net lease retail properties nationwide. The growing portfolio consists of high-quality properties leased to e-commerce resistant tenants with healthy balance sheets. Led by a management team of seasoned commercial real estate executives, NETSTREIT’s strategy is to create the highest quality net lease retail portfolio in the country with the goal of generating consistent cash flows and dividends for its investors.