Analyzing Tanger (NYSE:SKT) and Federal Realty Investment Trust (NYSE:FRT)

Federal Realty Investment Trust (NYSE:FRT) and Tanger (NYSE:SKT) are both mid-cap finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, dividends, institutional ownership, risk, profitability, analyst recommendations and earnings.

Valuation & Earnings

This table compares Federal Realty Investment Trust and Tanger”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Federal Realty Investment Trust	$1.28 billion	7.17	$411.08 million	$4.67	22.77
Tanger	$581.56 million	6.99	$114.78 million	$1.00	35.49

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

Risk and Volatility

Federal Realty Investment Trust has a beta of 0.99, meaning that its stock price is 1% less volatile than the S&P 500. Comparatively, Tanger has a beta of 1.16, meaning that its stock price is 16% more volatile than the S&P 500.

Dividends

Federal Realty Investment Trust pays an annual dividend of $4.52 per share and has a dividend yield of 4.3%. Tanger pays an annual dividend of $1.17 per share and has a dividend yield of 3.3%. Federal Realty Investment Trust pays out 96.8% 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 pays out 117.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Federal Realty Investment Trust has raised its dividend for 58 consecutive years and Tanger has raised its dividend for 4 consecutive years. Federal Realty Investment Trust is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider & Institutional Ownership

93.9% of Federal Realty Investment Trust shares are held by institutional investors. Comparatively, 85.2% of Tanger shares are held by institutional investors. 1.0% of Federal Realty Investment Trust shares are held by insiders. Comparatively, 5.7% of Tanger shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings and target prices for Federal Realty Investment Trust and Tanger, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Federal Realty Investment Trust	0	9	7	1	2.53
Tanger	0	6	2	1	2.44

Federal Realty Investment Trust presently has a consensus price target of $111.60, suggesting a potential upside of 4.94%. Tanger has a consensus price target of $36.88, suggesting a potential upside of 3.90%. Given Federal Realty Investment Trust’s stronger consensus rating and higher possible upside, research analysts plainly believe Federal Realty Investment Trust is more favorable than Tanger.

Profitability

This table compares Federal Realty Investment Trust and Tanger’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Federal Realty Investment Trust	32.14%	13.10%	4.67%
Tanger	19.70%	16.43%	4.48%

Summary

Federal Realty Investment Trust beats Tanger on 13 of the 17 factors compared between the two stocks.

About Federal Realty Investment Trust

Federal Realty Investment Trust is an equity real estate investment trust, which engages in the provision of ownership, management, and redevelopment of retail and mixed-use properties located primarily in communities where demand exceeds supply in strategically selected metropolitan markets. The company was founded in 1962 and is headquartered in North Bethesda, MD.

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.