Head-To-Head Analysis: Tanger (NYSE:SKT) vs. LXP Industrial Trust (NYSE:LXP)

Tanger (NYSE:SKT) and LXP Industrial Trust (NYSE:LXP) are both mid-cap finance companies, but which is the superior investment? We will compare the two companies based on the strength of their analyst recommendations, risk, earnings, profitability, institutional ownership, valuation and 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 insiders. Comparatively, 2.2% of LXP Industrial Trust shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Risk and Volatility

Tanger has a beta of 1.85, meaning that its share price is 85% more volatile than the S&P 500. Comparatively, LXP Industrial Trust has a beta of 0.85, meaning that its share price is 15% less volatile than the S&P 500.

Earnings & 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	$478.84 million	6.19	$99.15 million	$0.91	29.79
LXP Industrial Trust	$341.68 million	7.86	$30.38 million	$0.04	228.00

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.

Analyst Ratings

This is a breakdown of recent ratings 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 presently has a consensus price target of $29.57, suggesting a potential upside of 9.08%. LXP Industrial Trust has a consensus price target of $11.33, suggesting a potential upside of 24.27%. Given LXP Industrial Trust’s stronger consensus rating and higher possible upside, analysts clearly believe LXP Industrial Trust is more favorable than Tanger.

Dividends

Tanger pays an annual dividend of $1.10 per share and has a dividend yield of 4.1%. LXP Industrial Trust pays an annual dividend of $0.52 per share and has a dividend yield of 5.7%. Tanger pays out 120.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. LXP Industrial Trust pays out 1,300.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

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%

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.