Ramco-Gershenson Properties Trust (RPT) vs. Tanger Factory Outlet Centers (NYSE:SKT) Critical Comparison

Ramco-Gershenson Properties Trust (NYSE: RPT) and Tanger Factory Outlet Centers (NYSE:SKT) are both finance companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, institutional ownership, analyst recommendations, profitabiliy, valuation, earnings and risk.

Analyst Ratings

This is a breakdown of current ratings for Ramco-Gershenson Properties Trust and Tanger Factory Outlet Centers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ramco-Gershenson Properties Trust 1 2 4 0 2.43
Tanger Factory Outlet Centers 2 3 2 0 2.00

Ramco-Gershenson Properties Trust currently has a consensus price target of $16.00, suggesting a potential upside of 15.52%. Tanger Factory Outlet Centers has a consensus price target of $30.50, suggesting a potential upside of 14.79%. Given Ramco-Gershenson Properties Trust’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Ramco-Gershenson Properties Trust is more favorable than Tanger Factory Outlet Centers.

Profitability

This table compares Ramco-Gershenson Properties Trust and Tanger Factory Outlet Centers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ramco-Gershenson Properties Trust 15.05% 4.99% 1.86%
Tanger Factory Outlet Centers 29.65% 20.75% 5.66%

Risk and Volatility

Ramco-Gershenson Properties Trust has a beta of 0.71, indicating that its share price is 29% less volatile than the S&P 500. Comparatively, Tanger Factory Outlet Centers has a beta of 0.46, indicating that its share price is 54% less volatile than the S&P 500.

Insider and Institutional Ownership

96.8% of Ramco-Gershenson Properties Trust shares are held by institutional investors. Comparatively, 94.9% of Tanger Factory Outlet Centers shares are held by institutional investors. 1.6% of Ramco-Gershenson Properties Trust 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, hedge funds and endowments believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Ramco-Gershenson Properties Trust and Tanger Factory Outlet Centers’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Ramco-Gershenson Properties Trust $263.77 million 4.17 $164.53 million $0.41 33.78
Tanger Factory Outlet Centers $493.28 million 5.12 $274.82 million $1.51 17.60

Tanger Factory Outlet Centers has higher revenue and earnings than Ramco-Gershenson Properties Trust. Tanger Factory Outlet Centers is trading at a lower price-to-earnings ratio than Ramco-Gershenson Properties Trust, indicating that it is currently the more affordable of the two stocks.

Dividends

Ramco-Gershenson Properties Trust pays an annual dividend of $0.88 per share and has a dividend yield of 6.4%. Tanger Factory Outlet Centers pays an annual dividend of $1.37 per share and has a dividend yield of 5.2%. Ramco-Gershenson Properties Trust pays out 214.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. 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. Ramco-Gershenson Properties Trust has raised its dividend for 24 consecutive years and Tanger Factory Outlet Centers has raised its dividend for 4 consecutive years. Ramco-Gershenson Properties Trust is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Tanger Factory Outlet Centers beats Ramco-Gershenson Properties Trust on 9 of the 17 factors compared between the two stocks.

About Ramco-Gershenson Properties Trust

Ramco-Gershenson Properties Trust is an equity real estate investment trust. The Company’s primary business is the ownership, management, redevelopment, development and operation of retail shopping centers. As of December 31, 2016, it owned and managed multi-anchored shopping centers in 12 metropolitan markets in the United States. It conducts its business through its operating partnership, Ramco-Gershenson Properties, L.P. It invests in large, multi-anchored shopping centers that include national chain store tenants and supermarket tenants. National chain anchor tenants in its centers include, among others, Bed Bath and Beyond, Dick’s Sporting Goods, and Home Depot. Supermarket anchor tenants in its centers include, among others, Publix Super Market, Whole Foods, Kroger and Sprouts. Its shopping centers are located in metropolitan markets, such as Metro Detroit, Southeast Florida, Greater Denver, Cincinnati, St. Louis, Jacksonville, Tampa/Lakeland, Milwaukee, Chicago and Atlanta.

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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