Weingarten Realty Investors (NYSE: WRI) and Tanger Factory Outlet Centers (NYSE:SKT) are both mid-cap finance companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, risk, valuation, institutional ownership, earnings, analyst recommendations and profitability.
Weingarten Realty Investors pays an annual dividend of $1.54 per share and has a dividend yield of 4.8%. Tanger Factory Outlet Centers pays an annual dividend of $1.37 per share and has a dividend yield of 5.5%. Weingarten Realty Investors pays out 104.8% 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. Weingarten Realty Investors has increased its dividend for 24 consecutive years and Tanger Factory Outlet Centers has increased its dividend for 7 consecutive years. Tanger Factory Outlet Centers is clearly the better dividend stock, given its higher yield and lower payout ratio.
Earnings and Valuation
This table compares Weingarten Realty Investors and Tanger Factory Outlet Centers’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Weingarten Realty Investors||$571.15 million||7.16||$367.56 million||$1.47||21.65|
|Tanger Factory Outlet Centers||$493.28 million||4.80||$276.68 million||$1.51||16.49|
Weingarten Realty Investors has higher revenue and earnings than Tanger Factory Outlet Centers. Tanger Factory Outlet Centers is trading at a lower price-to-earnings ratio than Weingarten Realty Investors, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of current ratings and recommmendations for Weingarten Realty Investors and Tanger Factory Outlet Centers, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Weingarten Realty Investors||1||2||1||0||2.00|
|Tanger Factory Outlet Centers||2||4||2||0||2.00|
Weingarten Realty Investors presently has a consensus target price of $33.50, indicating a potential upside of 5.25%. Tanger Factory Outlet Centers has a consensus target price of $29.90, indicating a potential upside of 20.08%. Given Tanger Factory Outlet Centers’ higher probable upside, analysts clearly believe Tanger Factory Outlet Centers is more favorable than Weingarten Realty Investors.
Institutional & Insider Ownership
80.3% of Weingarten Realty Investors shares are owned by institutional investors. Comparatively, 96.8% of Tanger Factory Outlet Centers shares are owned by institutional investors. 7.3% of Weingarten Realty Investors shares are owned by company insiders. Comparatively, 4.8% of Tanger Factory Outlet Centers shares are owned by company 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.
Volatility & Risk
Weingarten Realty Investors has a beta of 0.72, meaning that its stock price is 28% less volatile than the S&P 500. Comparatively, Tanger Factory Outlet Centers has a beta of 0.49, meaning that its stock price is 51% less volatile than the S&P 500.
This table compares Weingarten Realty Investors and Tanger Factory Outlet Centers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Weingarten Realty Investors||33.57%||11.03%||4.36%|
|Tanger Factory Outlet Centers||29.65%||20.75%||5.66%|
About Weingarten Realty Investors
Weingarten Realty Investors is a real estate investment trust (REIT). The Company’s primary business is leasing space to tenants in the shopping centers it owns or leases. The Company also provides property management services. The Company is in the business of owning, managing and developing retail shopping centers. As of December 31, 2016, the Company had owned or operated under long-term leases, either directly or through its interest in real estate joint ventures or partnerships, a total of 220 centers, primarily neighborhood and community shopping centers, which were located in 18 states spanning the country from coast to coast with approximately 44.7 million square feet of gross leasable area. Its centers are located principally in the South, West Coast and Southeast Coast of the United States with concentrations in Arizona, California, Florida and Texas. It also owned interests in 28 parcels of land that totaled approximately 19.8 million square feet, as of December 31, 2016.
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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