CoreSite Realty Corporation (NYSE: COR) and Tanger Factory Outlet Centers (NYSE:SKT) are both mid-cap finance companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, dividends, risk, institutional ownership, valuation, analyst recommendations and earnings.

Institutional & Insider Ownership

98.3% of CoreSite Realty Corporation shares are owned by institutional investors. Comparatively, 96.8% of Tanger Factory Outlet Centers shares are owned by institutional investors. 1.5% of CoreSite Realty Corporation shares are owned by insiders. Comparatively, 4.8% of Tanger Factory Outlet Centers shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Dividends

CoreSite Realty Corporation pays an annual dividend of $3.60 per share and has a dividend yield of 3.2%. Tanger Factory Outlet Centers pays an annual dividend of $1.37 per share and has a dividend yield of 5.4%. CoreSite Realty Corporation pays out 206.9% 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 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. CoreSite Realty Corporation has raised its dividend for 24 consecutive years and Tanger Factory Outlet Centers has raised its dividend for 6 consecutive years. Tanger Factory Outlet Centers is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares CoreSite Realty Corporation and Tanger Factory Outlet Centers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CoreSite Realty Corporation 15.15% 14.14% 4.69%
Tanger Factory Outlet Centers 29.65% 20.75% 5.66%

Valuation & Earnings

This table compares CoreSite Realty Corporation and Tanger Factory Outlet Centers’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
CoreSite Realty Corporation $444.59 million 8.73 $232.47 million $1.74 65.18
Tanger Factory Outlet Centers $493.28 million 4.88 $276.68 million $1.51 16.76

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

Analyst Ratings

This is a breakdown of recent recommendations and price targets for CoreSite Realty Corporation and Tanger Factory Outlet Centers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CoreSite Realty Corporation 0 7 4 0 2.36
Tanger Factory Outlet Centers 2 4 2 0 2.00

CoreSite Realty Corporation presently has a consensus target price of $99.89, indicating a potential downside of 11.92%. Tanger Factory Outlet Centers has a consensus target price of $29.90, indicating a potential upside of 18.14%. Given Tanger Factory Outlet Centers’ higher probable upside, analysts clearly believe Tanger Factory Outlet Centers is more favorable than CoreSite Realty Corporation.

Volatility and Risk

CoreSite Realty Corporation has a beta of 0.56, suggesting that its stock price is 44% less volatile than the S&P 500. Comparatively, Tanger Factory Outlet Centers has a beta of 0.49, suggesting that its stock price is 51% less volatile than the S&P 500.

Summary

Tanger Factory Outlet Centers beats CoreSite Realty Corporation on 9 of the 17 factors compared between the two stocks.

CoreSite Realty Corporation Company Profile

CoreSite Realty Corporation (CoreSite) is an integrated, self-administered and self-managed real estate investment trust. The Company, through its controlling interest in CoreSite, L.P., is engaged in the business of ownership, acquisition, construction and operation of data centers across a range of markets in the United States, including the Northern Virginia, New York and San Francisco Bay areas, Chicago, Los Angeles, Boston, Miami and Denver. The enterprises, network operators, cloud providers and supporting service providers choose CoreSite to connect and protect their data, applications and computing workloads. Its offerings include the CoreSite Open Cloud Exchange and the Any2 Internet Exchange. As of December 31, 2016, it had offered cloud-enabled, network data center campuses with over 20,000 interconnections across its portfolio and direct access to carriers and Internet service providers, cloud and information technology service providers, and inter site connectivity.

Tanger Factory Outlet Centers Company Profile

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.

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