Getty Realty Corporation (NYSE: GTY) and Tanger Factory Outlet Centers (NYSE:SKT) are both finance companies, but which is the better business? We will contrast the two companies based on the strength of their dividends, analyst recommendations, earnings, risk, institutional ownership, valuation and profitability.

Profitability

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

Net Margins Return on Equity Return on Assets
Getty Realty Corporation 36.66% 9.62% 4.89%
Tanger Factory Outlet Centers 29.65% 20.75% 5.66%

Analyst Ratings

This is a breakdown of current recommendations for Getty Realty Corporation and Tanger Factory Outlet Centers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Getty Realty Corporation 1 0 2 0 2.33
Tanger Factory Outlet Centers 2 3 2 0 2.00

Getty Realty Corporation presently has a consensus target price of $27.33, indicating a potential downside of 3.38%. Tanger Factory Outlet Centers has a consensus target price of $27.38, indicating a potential upside of 18.71%. Given Tanger Factory Outlet Centers’ higher possible upside, analysts clearly believe Tanger Factory Outlet Centers is more favorable than Getty Realty Corporation.

Institutional and Insider Ownership

52.4% of Getty Realty Corporation shares are held by institutional investors. Comparatively, 95.7% of Tanger Factory Outlet Centers shares are held by institutional investors. 22.3% of Getty Realty Corporation shares are held by company insiders. Comparatively, 4.8% of Tanger Factory Outlet Centers shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Risk & Volatility

Getty Realty Corporation has a beta of 0.55, indicating that its stock price is 45% less volatile than the S&P 500. Comparatively, Tanger Factory Outlet Centers has a beta of 0.49, indicating that its stock price is 51% less volatile than the S&P 500.

Earnings & Valuation

This table compares Getty Realty Corporation and Tanger Factory Outlet Centers’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Getty Realty Corporation $114.91 million 9.70 $78.24 million $1.19 23.77
Tanger Factory Outlet Centers $493.28 million 4.44 $276.68 million $1.51 15.27

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

Dividends

Getty Realty Corporation pays an annual dividend of $1.12 per share and has a dividend yield of 4.0%. Tanger Factory Outlet Centers pays an annual dividend of $1.37 per share and has a dividend yield of 5.9%. Getty Realty Corporation pays out 94.1% 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 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. Getty Realty Corporation has increased its dividend for 4 consecutive years and Tanger Factory Outlet Centers has increased its dividend for 24 consecutive years. Tanger Factory Outlet Centers is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Tanger Factory Outlet Centers beats Getty Realty Corporation on 10 of the 16 factors compared between the two stocks.

About Getty Realty Corporation

Getty Realty Corp. is a real estate investment trust (REIT). The Company specializes in the ownership, leasing and financing of convenience store and gasoline station properties. As of June 30, 2017, the Company’s 825 properties were located in 26 states across the United States and Washington, District of Columbia. Its properties are operated under a range of brands, including 76, Aloha, BP, Citgo, Conoco, Exxon, Getty, Mobil, RaceTrac, Shell and Valero. The Company owns the Getty name in connection with its real estate and the petroleum marketing business in the United States. As of June 30, 2017, the Company had owned 738 properties and leased 87 properties from third-party landlords. Its typical property is used as a convenience store and gasoline station. Its properties are concentrated in the Northeast and Mid-Atlantic regions.

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.

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