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 $4.0B against $2.6B — 1.5× the size. Tanger Inc. trades at the lower P/E: 31.3× against 36.9×. Tanger Inc. grew revenue faster over the last twelve months: 11.4% against 7.38%. Tanger Inc. has the higher net margin (20.7% vs 13.7%) and the higher return on invested capital (4.95% vs 3.18%). Both pay a dividend; Tanger Inc. yields more (3.66% vs 3.64%). Across the 21 metrics below, Tanger Inc. leads on 15 and Urban Edge Properties on 6.

Valuation

Metric SKT UE Reit Retail median
P/E 31.29 36.85 24.82
P/S 6.49 5.07 6.69
P/B 5.67 1.82 1.75
Price to free cash flow 34.62 n/m 13.29
EV/EBITDA 16.26 14.77 15.42
EV/Sales 9.16 8.20 10.60
Earnings yield 3.20% 2.71% 3.91%
Free cash flow yield 2.89% (1.24%) 2.98%

Profitability

Metric SKT UE Reit Retail median
Gross margin 69.54% 67.94% 71.78%
Operating margin 30.20% 30.06% 34.62%
Net margin 20.74% 13.72% 27.14%
Free cash flow margin 18.75% (6.29%) 18.82%
Return on equity 18.64% 4.91% 7.05%
Return on assets 4.78% 2.03% 3.40%
Return on invested capital 4.95% 3.18% 3.18%

Growth

Metric SKT UE Reit Retail median
Revenue growth (TTM) 11.37% 7.38% 8.49%
EPS growth (last fiscal year) 12.50% 23.33% —
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 1.19 0.94
Current ratio 2.12 1.57 1.62
Net debt to EBITDA 4.74 5.95 5.40

Dividend

Metric SKT UE Reit Retail median
Dividend yield 3.66% 3.64% 4.57%
Payout ratio 1.05 4.92 1.21

Size

Metric SKT UE Reit Retail median
Market cap 4.02b 2.64b 3.65b

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