Tanger Factory Outlet Centers (NYSE: SKT) and Ramco-Gershenson Properties Trust (NYSE:RPT) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, valuation, institutional ownership, analyst recommendations, profitabiliy, dividends and earnings.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Tanger Factory Outlet Centers and Ramco-Gershenson Properties Trust, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Tanger Factory Outlet Centers 2 3 2 0 2.00
Ramco-Gershenson Properties Trust 1 2 4 0 2.43

Tanger Factory Outlet Centers presently has a consensus target price of $30.50, suggesting a potential upside of 14.79%. Ramco-Gershenson Properties Trust has a consensus target price of $16.00, suggesting a potential upside of 15.52%. Given Ramco-Gershenson Properties Trust’s stronger consensus rating and higher probable upside, analysts plainly believe Ramco-Gershenson Properties Trust is more favorable than Tanger Factory Outlet Centers.

Profitability

This table compares Tanger Factory Outlet Centers and Ramco-Gershenson Properties Trust’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Tanger Factory Outlet Centers 29.65% 20.75% 5.66%
Ramco-Gershenson Properties Trust 15.05% 4.99% 1.86%

Volatility & Risk

Tanger Factory Outlet Centers has a beta of 0.46, suggesting that its share price is 54% less volatile than the S&P 500. Comparatively, Ramco-Gershenson Properties Trust has a beta of 0.71, suggesting that its share price is 29% less volatile than the S&P 500.

Insider & Institutional Ownership

94.9% of Tanger Factory Outlet Centers shares are owned by institutional investors. Comparatively, 96.8% of Ramco-Gershenson Properties Trust shares are owned by institutional investors. 2.1% of Tanger Factory Outlet Centers shares are owned by insiders. Comparatively, 1.6% of Ramco-Gershenson Properties Trust shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Tanger Factory Outlet Centers and Ramco-Gershenson Properties Trust’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Tanger Factory Outlet Centers $493.28 million 5.12 $274.82 million $1.51 17.60
Ramco-Gershenson Properties Trust $263.77 million 4.17 $164.53 million $0.41 33.78

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

Dividends

Tanger Factory Outlet Centers pays an annual dividend of $1.37 per share and has a dividend yield of 5.2%. Ramco-Gershenson Properties Trust pays an annual dividend of $0.88 per share and has a dividend yield of 6.4%. Tanger Factory Outlet Centers pays out 90.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Ramco-Gershenson Properties Trust pays out 214.6% 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 Factory Outlet Centers has increased its dividend for 24 consecutive years and Ramco-Gershenson Properties Trust has increased its dividend for 4 consecutive years.

Summary

Tanger Factory Outlet Centers beats Ramco-Gershenson Properties Trust on 10 of the 17 factors compared between the two stocks.

About Tanger Factory Outlet Centers

Tanger Factory Outlet Centers, Inc. is an owner and operator of outlet centers in the United States and Canada. The Company is a fully-integrated, self-administered and self-managed real estate investment trust (REIT), which focuses on developing, acquiring, owning, operating and managing outlet shopping centers. As of December 31, 2016, its portfolio consisted of 36 outlet centers, with a total gross leasable area of approximately 12.7 million square feet, which were 98% occupied and contained over 2,600 stores representing approximately 400 store brands. Its outlet centers and other assets are held by, and all of its operations are conducted by, Tanger Properties Limited Partnership and subsidiaries (Operating Partnership). The Company owns the majority of the units of partnership interest issued by the Operating Partnership, through its subsidiaries, Tanger GP Trust and Tanger LP Trust. Tanger GP Trust controls the Operating Partnership as its sole general partner.

About Ramco-Gershenson Properties Trust

Ramco-Gershenson Properties Trust is an equity real estate investment trust. The Company’s primary business is the ownership, management, redevelopment, development and operation of retail shopping centers. As of December 31, 2016, it owned and managed multi-anchored shopping centers in 12 metropolitan markets in the United States. It conducts its business through its operating partnership, Ramco-Gershenson Properties, L.P. It invests in large, multi-anchored shopping centers that include national chain store tenants and supermarket tenants. National chain anchor tenants in its centers include, among others, Bed Bath and Beyond, Dick’s Sporting Goods, and Home Depot. Supermarket anchor tenants in its centers include, among others, Publix Super Market, Whole Foods, Kroger and Sprouts. Its shopping centers are located in metropolitan markets, such as Metro Detroit, Southeast Florida, Greater Denver, Cincinnati, St. Louis, Jacksonville, Tampa/Lakeland, Milwaukee, Chicago and Atlanta.

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