Head to Head Analysis: NETSTREIT (NYSE:NTST) and Tanger (NYSE:SKT)

NETSTREIT (NYSE:NTST) and Tanger (NYSE:SKT) are both mid-cap real estate companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, risk, valuation, profitability, earnings, analyst recommendations and dividends.

Dividends

NETSTREIT pays an annual dividend of $0.90 per share and has a dividend yield of 5.2%. Tanger pays an annual dividend of $1.25 per share and has a dividend yield of 3.4%. NETSTREIT pays out 409.1% 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 pays out 113.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. NETSTREIT has raised its dividend for 1 consecutive years and Tanger has raised its dividend for 4 consecutive years.

Volatility & Risk

NETSTREIT has a beta of 0.8, indicating that its stock price is 20% less volatile than the S&P 500. Comparatively, Tanger has a beta of 1.12, indicating that its stock price is 12% more volatile than the S&P 500.

Insider & Institutional Ownership

85.2% of Tanger shares are owned by institutional investors. 0.7% of NETSTREIT shares are owned by insiders. Comparatively, 3.2% of Tanger shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
NETSTREIT	9.18%	1.33%	0.74%
Tanger	20.74%	17.72%	4.62%

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for NETSTREIT and Tanger, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NETSTREIT	0	1	13	0	2.93
Tanger	1	7	2	0	2.10

NETSTREIT presently has a consensus price target of $21.94, suggesting a potential upside of 26.70%. Tanger has a consensus price target of $40.17, suggesting a potential upside of 10.25%. Given NETSTREIT’s stronger consensus rating and higher probable upside, research analysts plainly believe NETSTREIT is more favorable than Tanger.

Valuation and Earnings

This table compares NETSTREIT and Tanger”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NETSTREIT	$195.01 million	11.15	$6.90 million	$0.22	78.70
Tanger	$581.56 million	7.20	$114.78 million	$1.10	33.12

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

Summary

Tanger beats NETSTREIT on 11 of the 17 factors compared between the two stocks.

About NETSTREIT

NETSTREIT Corp. is an internally managed real estate investment trust (REIT) based in Dallas, Texas that specializes in acquiring single-tenant net lease retail properties nationwide. The growing portfolio consists of high-quality properties leased to e-commerce resistant tenants with healthy balance sheets. Led by a management team of seasoned commercial real estate executives, NETSTREIT’s strategy is to create the highest quality net lease retail portfolio in the country with the goal of generating consistent cash flows and dividends for its investors.

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.