Brixmor Property Group (NYSE: BRX) and Tanger Factory Outlet Centers (NYSE:SKT) are both mid-cap finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, risk, valuation, institutional ownership, profitability, analyst recommendations and dividends.
Volatility and Risk
Brixmor Property Group has a beta of 0.53, meaning that its stock price is 47% less volatile than the S&P 500. Comparatively, Tanger Factory Outlet Centers has a beta of 0.46, meaning that its stock price is 54% less volatile than the S&P 500.
Valuation & Earnings
This table compares Brixmor Property Group 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|
|Brixmor Property Group||$1.29 billion||4.43||$840.64 million||$0.98||19.12|
|Tanger Factory Outlet Centers||$493.28 million||4.63||$276.68 million||$1.51||15.93|
Brixmor Property Group has higher revenue and earnings than Tanger Factory Outlet Centers. Tanger Factory Outlet Centers is trading at a lower price-to-earnings ratio than Brixmor Property Group, indicating that it is currently the more affordable of the two stocks.
This table compares Brixmor Property Group and Tanger Factory Outlet Centers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Brixmor Property Group||23.06%||10.22%||3.19%|
|Tanger Factory Outlet Centers||29.65%||20.75%||5.66%|
This is a summary of current ratings for Brixmor Property Group and Tanger Factory Outlet Centers, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Brixmor Property Group||0||5||6||0||2.55|
|Tanger Factory Outlet Centers||2||3||2||0||2.00|
Brixmor Property Group currently has a consensus target price of $25.39, suggesting a potential upside of 35.48%. Tanger Factory Outlet Centers has a consensus target price of $30.50, suggesting a potential upside of 26.77%. Given Brixmor Property Group’s stronger consensus rating and higher probable upside, research analysts clearly believe Brixmor Property Group is more favorable than Tanger Factory Outlet Centers.
Institutional & Insider Ownership
98.0% of Tanger Factory Outlet Centers shares are held by institutional investors. 0.3% of Brixmor Property Group shares are held by company insiders. Comparatively, 2.1% of Tanger Factory Outlet Centers shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Brixmor Property Group pays an annual dividend of $1.04 per share and has a dividend yield of 5.5%. Tanger Factory Outlet Centers pays an annual dividend of $1.37 per share and has a dividend yield of 5.7%. Brixmor Property Group pays out 106.1% 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. Tanger Factory Outlet Centers has raised 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.
Tanger Factory Outlet Centers beats Brixmor Property Group on 10 of the 17 factors compared between the two stocks.
Brixmor Property Group Company Profile
Brixmor Property Group Inc. is an internally managed real estate investment trust. The Company conducts its operations primarily through Brixmor Operating Partnership LP and subsidiaries (collectively, the Operating Partnership). As of December 31, 2016, it owned interests in 512 shopping centers (the Portfolio) with approximately 86 million square feet of gross leasable area (GLA), including 511 shopping centers and one shopping center held through an unconsolidated joint venture. With an average shopping center size of 167,982 square feet as of December 31, 2016, the Company’s portfolio consisted predominantly of community and neighborhood shopping centers. As of December 31, 2016, the Company’s properties were located in various states of the United States, such as Texas, Florida, California, New York, Illinois, Georgia, New Jersey, Ohio, North Carolina, Michigan, Connecticut, Tennessee, Kentucky, Colorado, Arizona, Delaware, West Virginia, Vermont, Maine, Oklahoma and New Mexico.
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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