Kimco Realty (NYSE:KIM) and Tanger (NYSE:SKT) Critical Survey

Kimco Realty (NYSE:KIM) and Tanger (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, valuation, institutional ownership, earnings, profitability, risk and analyst recommendations.

Risk & Volatility

Kimco Realty has a beta of 1.28, indicating that its stock price is 28% more volatile than the S&P 500. Comparatively, Tanger has a beta of 1.37, indicating that its stock price is 37% more volatile than the S&P 500.

Insider & Institutional Ownership

89.3% of Kimco Realty shares are held by institutional investors. Comparatively, 85.2% of Tanger shares are held by institutional investors. 2.2% of Kimco Realty shares are held by insiders. Comparatively, 5.7% of Tanger shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Kimco Realty and Tanger’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kimco Realty	28.54%	5.58%	2.99%
Tanger	18.22%	15.45%	4.18%

Dividends

Kimco Realty pays an annual dividend of $1.04 per share and has a dividend yield of 5.0%. Tanger pays an annual dividend of $1.17 per share and has a dividend yield of 3.5%. Kimco Realty pays out 125.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Tanger pays out 124.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Kimco Realty has increased its dividend for 2 consecutive years and Tanger has increased its dividend for 4 consecutive years.

Analyst Ratings

This is a breakdown of current ratings for Kimco Realty and Tanger, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kimco Realty	0	8	3	1	2.42
Tanger	0	6	2	1	2.44

Kimco Realty presently has a consensus price target of $24.27, suggesting a potential upside of 17.49%. Tanger has a consensus price target of $36.13, suggesting a potential upside of 7.58%. Given Kimco Realty’s higher possible upside, equities research analysts clearly believe Kimco Realty is more favorable than Tanger.

Valuation & Earnings

This table compares Kimco Realty and Tanger”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kimco Realty	$2.12 billion	6.59	$410.79 million	$0.83	24.89
Tanger	$562.00 million	6.88	$98.60 million	$0.94	35.72

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

Summary

Tanger beats Kimco Realty on 10 of the 17 factors compared between the two stocks.

About Kimco Realty

Kimco Realty Corp. is a real estate investment trust (REIT) headquartered in New Hyde Park, N.Y., that is one of North America’s largest publicly traded owners and operators of open-air shopping centers. As of December 31, 2018, the company owned interests in 437 U.S. shopping centers comprising 76 million square feet of leasable space primarily concentrated in the top major metropolitan markets.

About Tanger

Tanger Inc. (NYSE: SKT) is a leading owner and operator of outlet and open-air retail shopping destinations, with over 43 years of expertise in the retail and outlet shopping industries. Tanger’s portfolio of 38 outlet centers, one adjacent managed center and one open-air lifestyle center comprises over 15 million square feet well positioned across tourist destinations and vibrant markets in 20 U.S. states and Canada. A publicly traded REIT since 1993, Tanger continues to innovate the retail experience for its shoppers with over 3,000 stores operated by more than 700 different brand name companies. Tanger is furnishing a Form 8-K with the Securities and Exchange Commission (“SEC”) that includes a supplemental information package for the quarter and year ended December 31, 2023.