Head to Head Review: Tanger Factory Outlet Centers (SKT) vs. Rouse Properties (RSE)
Rouse Properties (NYSE: RSE) and Tanger Factory Outlet Centers (NYSE:SKT) are both retail reits companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, profitability, dividends, analyst recommendations, risk, earnings and institutional ownership.
Institutional & Insider Ownership
99.5% of Tanger Factory Outlet Centers shares are owned by institutional investors. 4.8% of Tanger Factory Outlet Centers shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
This is a breakdown of current ratings for Rouse Properties and Tanger Factory Outlet Centers, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Tanger Factory Outlet Centers||1||4||1||0||2.00|
Tanger Factory Outlet Centers has a consensus price target of $25.38, indicating a potential downside of 2.55%. Given Tanger Factory Outlet Centers’ higher probable upside, analysts plainly believe Tanger Factory Outlet Centers is more favorable than Rouse Properties.
Rouse Properties pays an annual dividend of $0.54 per share and has a dividend yield of 3.0%. Tanger Factory Outlet Centers pays an annual dividend of $1.37 per share and has a dividend yield of 5.3%. Rouse Properties pays out -207.7% 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. Rouse Properties has increased its dividend for 4 consecutive years and Tanger Factory Outlet Centers has increased its dividend for 24 consecutive years. Tanger Factory Outlet Centers is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This table compares Rouse Properties and Tanger Factory Outlet Centers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Tanger Factory Outlet Centers||12.34%||8.98%||2.37%|
Earnings & Valuation
This table compares Rouse Properties and Tanger Factory Outlet Centers’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Tanger Factory Outlet Centers||$465.83 million||5.28||$193.74 million||$0.62||42.00|
Tanger Factory Outlet Centers has higher revenue and earnings than Rouse Properties. Rouse 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.
Tanger Factory Outlet Centers beats Rouse Properties on 11 of the 12 factors compared between the two stocks.
About Rouse Properties
Rouse Properties, Inc. is a United States-based real estate investment company. The Company owns and manages regional malls in protected markets or submarkets in the United States. The Company operates through the retail segment, which includes the operation, development and management of regional malls. The Company’s portfolio includes approximately 40 malls and retail centers in over 20 states totaling approximately 24.9 million square feet of retail space. The Company’s properties include Animas Valley Mall; Bayshore Mall; Birchwood Mall; Cache Valley Mall; Chesterfield Towne Center; Chula Vista Center; Colony Square Mall; Fig Garden Village; Grand Traverse Mall; Greenville Mall; Lakeland Square; Lansing Mall; Mall St. Vincent; NewPark Mall; North Plains Mall; Pierre Bossier Mall; Sikes Senter; Silver Lake Mall; Southland Center; Southland Mall; Spring Hill Mall; Valley Hills Mall; Vista Ridge Mall; Washington Park Mall; West Valley Mall; Westwood Mall, and White Mountain Mall.
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.
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