Tanger Inc. (SKT) vs Urban Edge Properties (UE)

Tanger Inc. and Urban Edge Properties are both Reit Retail companies. Tanger Inc. is the larger, with a market value of $4.4B against $2.8B — 1.6× the size. Urban Edge Properties trades at the lower P/E: 24.5× against 34.5×. Tanger Inc. grew revenue faster over the last twelve months: 11.4% against 5.50%. Urban Edge Properties has the higher net margin (21.1% vs 20.7%) and the lower return on invested capital (3.22% vs 4.95%). Both pay a dividend; Urban Edge Properties yields more (3.96% vs 3.21%). Across the 21 metrics below, Urban Edge Properties leads on 11 and Tanger Inc. on 10.

Valuation

Metric SKT UE Reit Retail median
P/E 34.54 24.49 24.06
P/S 7.17 5.29 7.25
P/B 6.26 1.85 1.77
Price to free cash flow 38.22 n/m 17.80
EV/EBITDA 17.45 14.89 15.96
EV/Sales 9.83 8.41 10.99
Earnings yield 2.90% 4.08% 4.16%
Free cash flow yield 2.62% (1.51%) 3.05%

Profitability

Metric SKT UE Reit Retail median
Gross margin 69.54% 67.82% 71.84%
Operating margin 30.20% 30.82% 36.94%
Net margin 20.74% 21.12% 29.40%
Free cash flow margin 18.75% (7.98%) 21.18%
Return on equity 18.64% 7.47% 7.18%
Return on assets 4.78% 3.09% 3.65%
Return on invested capital 4.95% 3.22% 3.22%

Growth

Metric SKT UE Reit Retail median
Revenue growth (TTM) 11.37% 5.50% 8.64%
EPS growth (last fiscal year) 12.50% 23.33% 16.00%
Revenue growth, 5-year CAGR 8.32% 7.41% 8.62%
Net income growth, 5-year CAGR 0.00% 0.00% 1.85%

Health

Metric SKT UE Reit Retail median
Debt to equity 2.65 1.15 0.88
Current ratio 2.12 1.89 1.24
Net debt to EBITDA 4.74 5.95 5.40

Dividend

Metric SKT UE Reit Retail median
Dividend yield 3.21% 3.96% 4.14%
Payout ratio 1.12 0.99 1.07

Size

Metric SKT UE Reit Retail median
Market cap 4.41b 2.78b 4.04b

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