Tanger Factory Outlet Centers (NYSE: SKT) and Retail Opportunity Investments Corp. (NASDAQ:ROIC) are both mid-cap finance companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, dividends, profitability, analyst recommendations, valuation, risk and institutional ownership.

Insider & Institutional Ownership

95.7% of Tanger Factory Outlet Centers shares are owned by institutional investors. Comparatively, 94.9% of Retail Opportunity Investments Corp. shares are owned by institutional investors. 4.8% of Tanger Factory Outlet Centers shares are owned by insiders. Comparatively, 2.2% of Retail Opportunity Investments Corp. shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Tanger Factory Outlet Centers and Retail Opportunity Investments Corp.’s top-line 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 4.90 $276.68 million $1.51 16.86
Retail Opportunity Investments Corp. $254.96 million 8.20 $162.92 million $0.33 57.76

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

Profitability

This table compares Tanger Factory Outlet Centers and Retail Opportunity Investments Corp.’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%
Retail Opportunity Investments Corp. 13.92% 2.71% 1.31%

Analyst Recommendations

This is a summary of recent recommendations and price targets for Tanger Factory Outlet Centers and Retail Opportunity Investments Corp., as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Tanger Factory Outlet Centers 2 4 2 0 2.00
Retail Opportunity Investments Corp. 0 4 3 0 2.43

Tanger Factory Outlet Centers currently has a consensus price target of $29.90, indicating a potential upside of 17.44%. Retail Opportunity Investments Corp. has a consensus price target of $22.33, indicating a potential upside of 17.17%. Given Tanger Factory Outlet Centers’ higher possible upside, analysts clearly believe Tanger Factory Outlet Centers is more favorable than Retail Opportunity Investments Corp..

Dividends

Tanger Factory Outlet Centers pays an annual dividend of $1.37 per share and has a dividend yield of 5.4%. Retail Opportunity Investments Corp. pays an annual dividend of $0.75 per share and has a dividend yield of 3.9%. 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. Retail Opportunity Investments Corp. pays out 227.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Retail Opportunity Investments Corp. has increased its dividend for 24 consecutive years. Tanger Factory Outlet Centers is clearly the better dividend stock, given its higher yield and lower payout ratio.

Risk and Volatility

Tanger Factory Outlet Centers has a beta of 0.49, suggesting that its share price is 51% less volatile than the S&P 500. Comparatively, Retail Opportunity Investments Corp. has a beta of 0.68, suggesting that its share price is 32% less volatile than the S&P 500.

Summary

Tanger Factory Outlet Centers beats Retail Opportunity Investments Corp. on 11 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 Retail Opportunity Investments Corp.

Retail Opportunity Investments Corp. (ROIC) is a fully integrated, self-managed real estate investment trust (REIT). The Company specializes in the acquisition, ownership and management of necessity-based community and neighborhood shopping centers on the west coast of the United States, anchored by supermarkets and drugstores. Retail Opportunity Investments Partnership, LP is the operating partnership of the Company. The Operating Partnership holds substantially all the assets of the Company and directly or indirectly holds the ownership interests in the Company’s real estate ventures. The Operating Partnership conducts the operations of the Company’s business. As of December 31, 2016, the Company’s portfolio consisted of 82 properties (81 retail and one office) totaling approximately 9.4 million square feet of gross leasable area (GLA). As of December 31, 2016, the Company’s portfolio was approximately 97.6% leased.

Receive News & Stock Ratings for Tanger Factory Outlet Centers Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Tanger Factory Outlet Centers Inc. and related stocks with our FREE daily email newsletter.