Tanger (NYSE:SKT – Get Free Report) and LXP Industrial Trust (NYSE:LXP – Get Free Report) are both mid-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, risk, profitability, dividends, valuation, institutional ownership and earnings.
Analyst Recommendations
This is a summary of current ratings and price targets for Tanger and LXP Industrial Trust, as provided by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Tanger | 0 | 4 | 3 | 0 | 2.43 |
LXP Industrial Trust | 0 | 0 | 3 | 0 | 3.00 |
Tanger currently has a consensus target price of $29.57, suggesting a potential upside of 12.61%. LXP Industrial Trust has a consensus target price of $11.33, suggesting a potential upside of 24.00%. Given LXP Industrial Trust’s stronger consensus rating and higher probable upside, analysts clearly believe LXP Industrial Trust is more favorable than Tanger.
Dividends
Insider and Institutional Ownership
85.2% of Tanger shares are owned by institutional investors. Comparatively, 93.5% of LXP Industrial Trust shares are owned by institutional investors. 5.8% of Tanger shares are owned by company insiders. Comparatively, 2.2% of LXP Industrial Trust shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Risk and Volatility
Tanger has a beta of 1.9, suggesting that its stock price is 90% more volatile than the S&P 500. Comparatively, LXP Industrial Trust has a beta of 0.86, suggesting that its stock price is 14% less volatile than the S&P 500.
Profitability
This table compares Tanger and LXP Industrial Trust’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Tanger | 20.27% | 17.72% | 4.30% |
LXP Industrial Trust | 5.52% | 0.86% | 0.46% |
Earnings and Valuation
This table compares Tanger and LXP Industrial Trust’s top-line revenue, earnings per share and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Tanger | $464.41 million | 6.18 | $99.15 million | $0.91 | 28.86 |
LXP Industrial Trust | $340.50 million | 7.90 | $30.38 million | $0.04 | 228.56 |
Tanger has higher revenue and earnings than LXP Industrial Trust. Tanger is trading at a lower price-to-earnings ratio than LXP Industrial Trust, indicating that it is currently the more affordable of the two stocks.
Summary
Tanger beats LXP Industrial Trust on 9 of the 15 factors compared between the two stocks.
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 LXP Industrial Trust
LXP Industrial Trust (NYSE: LXP) is a publicly traded real estate investment trust (REIT) focused on single-tenant industrial real estate investments across the United States. LXP seeks to expand its industrial portfolio through acquisitions, build-to-suit transactions, sale-leaseback transactions, development projects and other transactions.
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