Contrasting Tanger (NYSE:SKT) & Scentre Group (OTCMKTS:STGPF)

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

Dividends

Tanger pays an annual dividend of $1.25 per share and has a dividend yield of 3.3%. Scentre Group pays an annual dividend of $0.19 per share and has a dividend yield of 6.4%. 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. Scentre Group pays out 75.6% 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 has raised its dividend for 4 consecutive years. Scentre Group is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares Tanger and Scentre Group’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%
Scentre Group	N/A	N/A	N/A

Earnings and Valuation

This table compares Tanger and Scentre Group”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	7.58	$114.78 million	$1.10	34.89
Scentre Group	N/A	N/A	N/A	$0.26	11.88

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

Analyst Ratings

This is a breakdown of current ratings and target prices for Tanger and Scentre Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tanger	1	7	2	0	2.10
Scentre Group	0	0	0	0	0.00

Tanger currently has a consensus price target of $40.40, suggesting a potential upside of 5.26%. Given Tanger’s stronger consensus rating and higher possible upside, equities analysts clearly believe Tanger is more favorable than Scentre Group.

Institutional and Insider Ownership

85.2% of Tanger shares are owned by institutional investors. Comparatively, 67.9% of Scentre Group shares are owned by institutional investors. 3.2% of Tanger shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

Tanger beats Scentre Group on 12 of the 14 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 Scentre Group

Scentre Group owns and operates a leading portfolio of 42 Westfield destinations with 37 located in Australia and five in New Zealand encompassing more than 12,000 outlets. Our Westfield destinations are strategically located in the heart of the local communities we serve. Our centres are considered community hubs that connect people with services and experiences that enrich their daily lives. The Trust has a joint interest in 39 Westfield destinations.