Analyzing Tanger (NYSE:SKT) and Presidio Property Trust (NASDAQ:SQFT)

Tanger (NYSE:SKT) and Presidio Property Trust (NASDAQ:SQFT) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, analyst recommendations, valuation, institutional ownership, risk, earnings and dividends.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Tanger and Presidio Property Trust, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tanger	0	4	3	0	2.43
Presidio Property Trust	0	0	0	0	0.00

Tanger presently has a consensus target price of $36.00, suggesting a potential upside of 5.82%. Given Tanger’s stronger consensus rating and higher probable upside, analysts clearly believe Tanger is more favorable than Presidio Property Trust.

Earnings & Valuation

This table compares Tanger and Presidio Property Trust”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tanger	$512.81 million	7.34	$99.15 million	$0.86	39.56
Presidio Property Trust	$18.59 million	0.62	$10.15 million	($2.81)	-0.29

Tanger has higher revenue and earnings than Presidio Property Trust. Presidio Property Trust is trading at a lower price-to-earnings ratio than Tanger, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Tanger has a beta of 1.9, suggesting that its stock price is 90% more volatile than the S&P 500. Comparatively, Presidio Property Trust has a beta of 1.55, suggesting that its stock price is 55% more volatile than the S&P 500.

Profitability

This table compares Tanger and Presidio Property Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tanger	18.55%	16.25%	4.14%
Presidio Property Trust	-176.04%	-29.85%	-9.37%

Insider & Institutional Ownership

85.2% of Tanger shares are held by institutional investors. Comparatively, 38.9% of Presidio Property Trust shares are held by institutional investors. 5.8% of Tanger shares are held by company insiders. Comparatively, 18.7% of Presidio Property Trust shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Dividends

Tanger pays an annual dividend of $1.10 per share and has a dividend yield of 3.2%. Presidio Property Trust pays an annual dividend of $0.02 per share and has a dividend yield of 2.5%. Tanger pays out 127.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Presidio Property Trust pays out -0.7% of its earnings in the form of a dividend. Presidio Property Trust has increased its dividend for 1 consecutive years.

Summary

Tanger beats Presidio Property Trust on 14 of the 17 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 Presidio Property Trust

Presidio Property Trust, Inc. (we, our, us or the Company) is an internally-managed real estate investment trust (REIT), with holdings in office, industrial, retail and model home properties. We were incorporated in the State of California on September 28, 1999, and in August 2010, we reincorporated as a Maryland corporation. In October 2017, we changed our name from NetREIT, Inc., to Presidio Property Trust, Inc. Through Presidio Property Trust, Inc., its subsidiaries, and its partnerships, we own 12 commercial properties in fee interest, two of which we own as a partial interest in various affiliates, in which we serve as general partner, member and/or manager, and a special purpose acquisition company (until deconsolidation in September 2023). The Company has determined that the limited partnerships in which it owns less than 100% should be included in the Company’s consolidated financial statements as the Company directs their activities and has control of such limited partnerships.