Wheeler Real Estate Investment Trust (WHLR) vs. Tanger Factory Outlet Centers (SKT) Head to Head Analysis

Wheeler Real Estate Investment Trust (NASDAQ: WHLR) and Tanger Factory Outlet Centers (NYSE:SKT) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, risk, earnings, profitability, analyst recommendations, dividends and valuation.

Insider & Institutional Ownership

95.7% of Tanger Factory Outlet Centers shares are held by institutional investors. 5.3% of Wheeler Real Estate Investment Trust shares are held by insiders. Comparatively, 4.8% of Tanger Factory Outlet Centers shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings for Wheeler Real Estate Investment Trust and Tanger Factory Outlet Centers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Wheeler Real Estate Investment Trust 0 1 3 0 2.75
Tanger Factory Outlet Centers 2 4 2 0 2.00

Wheeler Real Estate Investment Trust presently has a consensus target price of $16.00, suggesting a potential upside of 77.19%. Tanger Factory Outlet Centers has a consensus target price of $29.90, suggesting a potential upside of 18.70%. Given Wheeler Real Estate Investment Trust’s stronger consensus rating and higher probable upside, analysts plainly believe Wheeler Real Estate Investment Trust is more favorable than Tanger Factory Outlet Centers.

Volatility & Risk

Wheeler Real Estate Investment Trust has a beta of 1.19, suggesting that its share price is 19% more volatile than the S&P 500. Comparatively, Tanger Factory Outlet Centers has a beta of 0.49, suggesting that its share price is 51% less volatile than the S&P 500.

Dividends

Wheeler Real Estate Investment Trust pays an annual dividend of $1.36 per share and has a dividend yield of 15.1%. Tanger Factory Outlet Centers pays an annual dividend of $1.37 per share and has a dividend yield of 5.4%. Wheeler Real Estate Investment Trust pays out -74.3% of its earnings in the form of a dividend. 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. Wheeler Real Estate Investment Trust has raised its dividend for 24 consecutive years. Wheeler Real Estate Investment Trust is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares Wheeler Real Estate Investment Trust and Tanger Factory Outlet Centers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Wheeler Real Estate Investment Trust -13.41% -14.10% -1.88%
Tanger Factory Outlet Centers 29.65% 20.75% 5.66%

Earnings & Valuation

This table compares Wheeler Real Estate Investment Trust and Tanger Factory Outlet Centers’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Wheeler Real Estate Investment Trust $52.98 million 1.48 $32.30 million ($1.83) -4.93
Tanger Factory Outlet Centers $493.28 million 4.85 $276.68 million $1.51 16.68

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

Summary

Tanger Factory Outlet Centers beats Wheeler Real Estate Investment Trust on 9 of the 17 factors compared between the two stocks.

About Wheeler Real Estate Investment Trust

Wheeler Real Estate Investment Trust, Inc. is a self-managed commercial real estate investment company. The Company focuses on acquiring and managing retail properties with a primary focus on grocery-anchored centers. As of December 31, 2016, the Company owned a portfolio consisting of 74 properties, including 59 retail shopping centers and five freestanding retail properties totaling 4,906,511 gross leasable square feet of which approximately 94% were leased, one office property, eight undeveloped land parcels totaling approximately 70 acres and one redevelopment project. Its properties are located in Virginia, North Carolina, South Carolina, Florida, Georgia, Kentucky, Oklahoma, Tennessee, Alabama, New Jersey, Pennsylvania and West Virginia. Its properties include Alex City Marketplace, Berkley Shopping Center, Clover Plaza, Darien Shopping Center, Cypress Shopping Center, Harrodsburg Marketplace, LaGrange Marketplace, Riverbridge Shopping Center and Village of Martinsville.

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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