InvenTrust Properties (NYSE:IVT) vs. Tanger (NYSE:SKT) Head-To-Head Analysis

InvenTrust Properties (NYSE:IVT) and Tanger (NYSE:SKT) are both mid-cap real estate companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, institutional ownership, profitability, valuation, analyst recommendations, risk and earnings.

Dividends

InvenTrust Properties pays an annual dividend of $1.00 per share and has a dividend yield of 3.0%. Tanger pays an annual dividend of $1.25 per share and has a dividend yield of 3.2%. InvenTrust Properties pays out 500.0% 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 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. InvenTrust Properties has increased its dividend for 4 consecutive years and Tanger has increased its dividend for 4 consecutive years. Tanger is clearly the better dividend stock, given its higher yield and lower payout ratio.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
InvenTrust Properties	$317.26 million	8.16	$111.42 million	$0.20	165.97
Tanger	$581.56 million	7.77	$114.78 million	$1.10	35.74

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
InvenTrust Properties	4.80%	0.85%	0.53%
Tanger	20.74%	17.72%	4.62%

Risk and Volatility

InvenTrust Properties has a beta of 0.78, indicating that its share price is 22% less volatile than the S&P 500. Comparatively, Tanger has a beta of 1.1, indicating that its share price is 10% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations and price targets for InvenTrust Properties and Tanger, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
InvenTrust Properties	0	1	5	1	3.00
Tanger	1	7	2	0	2.10

InvenTrust Properties presently has a consensus price target of $35.14, indicating a potential upside of 5.87%. Tanger has a consensus price target of $39.70, indicating a potential upside of 0.99%. Given InvenTrust Properties’ stronger consensus rating and higher probable upside, equities analysts plainly believe InvenTrust Properties is more favorable than Tanger.

Institutional and Insider Ownership

61.7% of InvenTrust Properties shares are owned by institutional investors. Comparatively, 85.2% of Tanger shares are owned by institutional investors. 0.7% of InvenTrust Properties shares are owned by company insiders. Comparatively, 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 is poised for long-term growth.

Summary

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

About InvenTrust Properties

InvenTrust Properties Corp. (the “Company,” “IVT,” or “InvenTrust”) is a premier Sun Belt, multi-tenant essential retail REIT that owns, leases, redevelops, acquires and manages grocery-anchored neighborhood and community centers as well as high-quality power centers that often have a grocery component. Management pursues the Company’s business strategy by acquiring retail properties in Sun Belt markets, opportunistically disposing of retail properties, maintaining a flexible capital structure, and enhancing environmental, social and governance (“ESG”) practices and standards. A trusted, local operator bringing real estate expertise to its tenant relationships, IVT has built a strong reputation with market participants across its portfolio. IVT is committed to leadership in ESG practices and has been a Global Real Estate Sustainability Benchmark (“GRESB”) member since 2013.

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.