Tanger (NYSE:SKT – Get Free Report) and CTO Realty Growth (NYSE:CTO – Get Free Report) are both real estate companies, but which is the superior investment? We will compare the two businesses based on the strength of their valuation, profitability, institutional ownership, earnings, risk, dividends and analyst recommendations.
Earnings & Valuation
This table compares Tanger and CTO Realty Growth”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Tanger | $612.31 million | 7.19 | $114.78 million | $1.10 | 34.84 |
| CTO Realty Growth | $149.54 million | 5.48 | $10.09 million | $1.36 | 16.08 |
Dividends
Tanger pays an annual dividend of $1.25 per share and has a dividend yield of 3.3%. CTO Realty Growth pays an annual dividend of $1.52 per share and has a dividend yield of 6.9%. 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. CTO Realty Growth pays out 111.8% 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 has raised its dividend for 4 consecutive years. CTO Realty Growth is clearly the better dividend stock, given its higher yield and lower payout ratio.
Volatility & Risk
Tanger has a beta of 1.1, meaning that its stock price is 10% more volatile than the S&P 500. Comparatively, CTO Realty Growth has a beta of 0.6, meaning that its stock price is 40% less volatile than the S&P 500.
Analyst Recommendations
This is a summary of current ratings and price targets for Tanger and CTO Realty Growth, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Tanger | 1 | 7 | 2 | 0 | 2.10 |
| CTO Realty Growth | 0 | 0 | 5 | 2 | 3.29 |
Tanger presently has a consensus price target of $40.40, suggesting a potential upside of 5.43%. CTO Realty Growth has a consensus price target of $24.50, suggesting a potential upside of 12.01%. Given CTO Realty Growth’s stronger consensus rating and higher probable upside, analysts plainly believe CTO Realty Growth is more favorable than Tanger.
Institutional and Insider Ownership
85.2% of Tanger shares are held by institutional investors. Comparatively, 67.2% of CTO Realty Growth shares are held by institutional investors. 3.2% of Tanger shares are held by insiders. Comparatively, 4.5% of CTO Realty Growth shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Profitability
This table compares Tanger and CTO Realty Growth’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Tanger | 20.74% | 17.72% | 4.62% |
| CTO Realty Growth | 32.63% | 8.90% | 4.05% |
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.
About CTO Realty Growth
CTO Realty Growth, Inc. is a publicly traded real estate investment trust that owns and operates a portfolio of high-quality, retail-based properties located primarily in higher growth markets in the United States. CTO also externally manages and owns a meaningful interest in Alpine Income Property Trust, Inc. (NYSE: PINE), a publicly traded net lease REIT.
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