Head-To-Head Review: Industrial Logistics Properties Trust (ILPT) & Tanger Factory Outlet Centers (SKT)

Share on StockTwits

Tanger Factory Outlet Centers (NYSE:SKT) and Industrial Logistics Properties Trust (NASDAQ:ILPT) are both small-cap finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, risk, earnings, profitability, valuation, dividends and institutional ownership.

Dividends

Tanger Factory Outlet Centers pays an annual dividend of $1.40 per share and has a dividend yield of 6.8%. Industrial Logistics Properties Trust pays an annual dividend of $1.32 per share and has a dividend yield of 6.4%. Tanger Factory Outlet Centers pays out 56.5% of its earnings in the form of a dividend. Industrial Logistics Properties Trust pays out 82.0% 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 has increased its dividend for 26 consecutive years. Tanger Factory Outlet Centers is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Ratings

This is a summary of current ratings and target prices for Tanger Factory Outlet Centers and Industrial Logistics Properties Trust, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Tanger Factory Outlet Centers 3 2 0 0 1.40
Industrial Logistics Properties Trust 1 0 2 0 2.33

Tanger Factory Outlet Centers presently has a consensus price target of $21.33, indicating a potential upside of 3.01%. Industrial Logistics Properties Trust has a consensus price target of $26.67, indicating a potential upside of 28.76%. Given Industrial Logistics Properties Trust’s stronger consensus rating and higher probable upside, analysts plainly believe Industrial Logistics Properties Trust is more favorable than Tanger Factory Outlet Centers.

Profitability

This table compares Tanger Factory Outlet Centers and Industrial Logistics Properties Trust’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Tanger Factory Outlet Centers 8.76% 7.88% 1.77%
Industrial Logistics Properties Trust 45.77% 7.20% 5.07%

Valuation and Earnings

This table compares Tanger Factory Outlet Centers and Industrial Logistics Properties Trust’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Tanger Factory Outlet Centers $494.68 million 3.93 $43.65 million $2.48 8.35
Industrial Logistics Properties Trust $162.53 million 8.29 $80.10 million $1.61 12.86

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

Insider & Institutional Ownership

98.3% of Tanger Factory Outlet Centers shares are owned by institutional investors. Comparatively, 56.0% of Industrial Logistics Properties Trust shares are owned by institutional investors. 2.1% of Tanger Factory Outlet Centers shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Tanger Factory Outlet Centers Company Profile

Tanger Factory Outlet Centers, Inc. (NYSE:SKT), is a publicly-traded REIT headquartered in Greensboro, North Carolina that operates and owns, or has an ownership interest in, a portfolio of 44 upscale outlet shopping centers. Tanger's operating properties are located in 22 states coast to coast and in Canada, totaling approximately 15.3 million square feet leased to over 3,100 stores operated by more than 530 different brand name companies. The Company has more than 37 years of experience in the outlet industry. Tanger Outlet Centers continue to attract more than 189 million shoppers annually. Tanger is furnishing a Form 8-K with the Securities and Exchange Commission that includes a supplemental information package for the quarter ended September 30, 2018.

Industrial Logistics Properties Trust Company Profile

Industrial Logistics Properties Trust is a real estate investment trust, or REIT, that owns and leases industrial and logistics properties throughout the United States. Industrial Logistics Properties Trust (NasdaqGS:ILPT) operates independently of Select Income REIT as of December 27, 2018.

Receive News & Ratings for Tanger Factory Outlet Centers Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Tanger Factory Outlet Centers and related companies with MarketBeat.com's FREE daily email newsletter.