Head to Head Contrast: Federal Realty Investment Trust (NYSE:FRT) and Tanger (NYSE:SKT)

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

Analyst Ratings

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

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

Tanger presently has a consensus price target of $36.88, indicating a potential upside of 4.92%. Federal Realty Investment Trust has a consensus price target of $111.13, indicating a potential upside of 6.37%. Given Federal Realty Investment Trust’s stronger consensus rating and higher probable upside, analysts plainly believe Federal Realty Investment Trust is more favorable than Tanger.

Insider and Institutional Ownership

85.2% of Tanger shares are owned by institutional investors. Comparatively, 93.9% of Federal Realty Investment Trust shares are owned by institutional investors. 5.7% of Tanger shares are owned by company insiders. Comparatively, 1.0% of Federal Realty Investment Trust shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Risk & Volatility

Tanger has a beta of 1.15, indicating that its share price is 15% more volatile than the S&P 500. Comparatively, Federal Realty Investment Trust has a beta of 0.99, indicating that its share price is 1% less volatile than the S&P 500.

Dividends

Tanger pays an annual dividend of $1.17 per share and has a dividend yield of 3.3%. Federal Realty Investment Trust pays an annual dividend of $4.52 per share and has a dividend yield of 4.3%. 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 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 has raised its dividend for 4 consecutive years and Federal Realty Investment Trust has raised its dividend for 58 consecutive years. Federal Realty Investment Trust is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Valuation and Earnings

This table compares Tanger and Federal Realty Investment Trust”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	6.92	$114.78 million	$1.00	35.15
Federal Realty Investment Trust	$1.28 billion	7.05	$411.08 million	$4.67	22.37

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.

Profitability

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

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

Summary

Federal Realty Investment Trust beats Tanger on 13 of the 17 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 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.