Tanger Inc. (NYSE: SKT) and Kimco Realty Corp. (NYSE: KIM) are two prominent players in the real estate investment trust (REIT) sector. Recent financial analyses indicate that Kimco Realty demonstrates stronger performance across multiple key metrics, including institutional ownership, dividends, and overall profitability.
Institutional and Insider Ownership
Institutional investors hold a significant portion of both companies’ shares, with **89.3%** of Kimco Realty’s stock owned by these entities compared to **85.2%** for Tanger. Insider ownership also reveals a contrast, as **5.7%** of Tanger’s shares are held by insiders, while only **2.2%** of Kimco Realty’s shares are owned by insiders. High levels of institutional ownership suggest that large investment entities foresee long-term growth potential in these companies.
Financial Performance and Valuation
Financial metrics paint a clearer picture of each company’s earnings and market valuation. Kimco Realty surpasses Tanger in both revenue and earnings per share (EPS). Additionally, Kimco is trading at a lower price-to-earnings (P/E) ratio, indicating it may represent a more affordable investment opportunity at this time.
The volatility associated with these stocks is also noteworthy. Tanger has a beta of **1.06**, while Kimco Realty has a slightly lower beta of **1.05**, suggesting that both companies’ share prices are moderately more volatile than the S&P 500.
Profitability metrics further highlight Kimco Realty’s advantages, particularly in net margins and returns on equity. Such factors are crucial for investors assessing the financial health of these REITs.
Dividends and Payout Ratios
In terms of dividends, Tanger pays an annual dividend of **$1.17** per share with a yield of **3.6%**, while Kimco Realty offers an annual dividend of **$1.00** per share, boasting a higher yield of **4.9%**. However, both companies exhibit concerning payout ratios, with Tanger distributing **124.5%** of its earnings as dividends and Kimco Realty at **120.5%**. These figures suggest potential challenges in sustaining their dividend payments in the future.
Despite this, Tanger has increased its dividend for **four consecutive years**, while Kimco Realty has raised its dividend for **two consecutive years**. Nevertheless, Kimco Realty presents a more attractive option for dividend-seeking investors due to its higher yield and comparatively lower payout ratio.
Conclusion: A Comparative Overview
Overall, an analysis of the two companies indicates that Kimco Realty outperforms Tanger in **nine out of seventeen** key financial factors. As both companies continue to navigate an evolving retail landscape, their respective strengths and weaknesses will play a critical role in their future performance.
Tanger Inc., established for over **43 years**, operates **38 outlet centers** across **20 U.S. states** and Canada. The company focuses on enhancing the retail experience with over **3,000 stores** from more than **700 brand-name companies**. In contrast, Kimco Realty is headquartered in **New Hyde Park, New York**, and is one of North America’s largest publicly traded owners and operators of open-air shopping centers, managing **437 U.S. shopping centers** with approximately **76 million square feet** of leasable space.
As investors weigh their options, the financial metrics and operational histories of these companies will remain paramount in guiding their decisions.
