Head-To-Head Comparison: Equinix (NASDAQ:EQIX) versus Tanger (NYSE:SKT)

Equinix (NASDAQ:EQIX) and Tanger (NYSE:SKT) are both finance companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, dividends, institutional ownership, profitability, valuation, analyst recommendations and risk.

Institutional & Insider Ownership

94.9% of Equinix shares are held by institutional investors. Comparatively, 85.2% of Tanger shares are held by institutional investors. 0.3% of Equinix shares are held by company insiders. Comparatively, 5.7% of Tanger shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Dividends

Equinix pays an annual dividend of $18.76 per share and has a dividend yield of 2.4%. Tanger pays an annual dividend of $1.17 per share and has a dividend yield of 3.4%. Equinix pays out 183.7% 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 133.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Equinix has raised its dividend for 10 consecutive years and Tanger has raised its dividend for 4 consecutive years. Tanger is clearly the better dividend stock, given its higher yield and lower payout ratio.

Risk and Volatility

Equinix has a beta of 0.92, meaning that its share price is 8% less volatile than the S&P 500. Comparatively, Tanger has a beta of 1.34, meaning that its share price is 34% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and target prices for Equinix and Tanger, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Equinix	0	5	19	5	3.00
Tanger	0	5	5	0	2.50

Equinix presently has a consensus price target of $962.52, indicating a potential upside of 22.05%. Tanger has a consensus price target of $36.50, indicating a potential upside of 6.85%. Given Equinix’s stronger consensus rating and higher probable upside, research analysts plainly believe Equinix is more favorable than Tanger.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Equinix	11.11%	7.22%	2.73%
Tanger	18.22%	15.45%	4.18%

Valuation and Earnings

This table compares Equinix and Tanger”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Equinix	$8.75 billion	8.82	$815.00 million	$10.21	77.24
Tanger	$526.06 million	7.35	$98.60 million	$0.88	38.82

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

Summary

Equinix beats Tanger on 11 of the 18 factors compared between the two stocks.

About Equinix

Equinix (Nasdaq: EQIX) is the world's digital infrastructure company . Digital leaders harness Equinix's trusted platform to bring together and interconnect foundational infrastructure at software speed. Equinix enables organizations to access all the right places, partners and possibilities to scale with agility, speed the launch of digital services, deliver world-class experiences and multiply their value, while supporting their sustainability goals.

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.