Financial Review: Tanger (NYSE:SKT) versus Phillips Edison & Company, Inc. (NASDAQ:PECO)

Tanger (NYSE:SKT) and Phillips Edison & Company, Inc. (NASDAQ:PECO) are both mid-cap finance companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, valuation, analyst recommendations, risk, profitability, institutional ownership and earnings.

Earnings and Valuation

This table compares Tanger and Phillips Edison & Company, Inc.”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tanger	$581.56 million	7.05	$114.78 million	$1.00	35.79
Phillips Edison & Company, Inc.	$726.59 million	6.59	$111.30 million	$0.89	42.75

Tanger has higher earnings, but lower revenue than Phillips Edison & Company, Inc.. Tanger is trading at a lower price-to-earnings ratio than Phillips Edison & Company, Inc., indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Tanger has a beta of 1.2, suggesting that its stock price is 20% more volatile than the S&P 500. Comparatively, Phillips Edison & Company, Inc. has a beta of 0.53, suggesting that its stock price is 47% 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%. Phillips Edison & Company, Inc. pays an annual dividend of $1.30 per share and has a dividend yield of 3.4%. 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. Phillips Edison & Company, Inc. pays out 146.1% 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 Phillips Edison & Company, Inc. has raised its dividend for 1 consecutive years.

Profitability

This table compares Tanger and Phillips Edison & Company, Inc.’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%
Phillips Edison & Company, Inc.	15.32%	4.29%	2.12%

Insider and Institutional Ownership

85.2% of Tanger shares are owned by institutional investors. Comparatively, 80.7% of Phillips Edison & Company, Inc. shares are owned by institutional investors. 5.7% of Tanger shares are owned by company insiders. Comparatively, 8.0% of Phillips Edison & Company, Inc. shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of recent recommendations and price targets for Tanger and Phillips Edison & Company, Inc., as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tanger	0	6	1	1	2.38
Phillips Edison & Company, Inc.	0	5	4	0	2.44

Tanger currently has a consensus price target of $36.71, indicating a potential upside of 2.59%. Phillips Edison & Company, Inc. has a consensus price target of $39.43, indicating a potential upside of 3.62%. Given Phillips Edison & Company, Inc.’s stronger consensus rating and higher possible upside, analysts clearly believe Phillips Edison & Company, Inc. is more favorable than Tanger.

Summary

Tanger beats Phillips Edison & Company, Inc. on 11 of the 18 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 Phillips Edison & Company, Inc.

Phillips Edison & Co., Inc. is a real estate investment trust, which engages in the ownership and operation of shopping centers. It also offers an investment management business providing property management and advisory services. Its portfolio consists of well-occupied, grocery-anchored neighborhood and community shopping centers having a mix of national, regional, and local retailers offering necessity-based goods and services. The company was founded by Jeffrey S. Edison and Michael C. Phillips in 1991 and is headquartered in Cincinnati, OH.