Macerich (NYSE:MAC) & Tanger (NYSE:SKT) Critical Analysis

Macerich (NYSE:MAC) and Tanger (NYSE:SKT) are both mid-cap finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, analyst recommendations, profitability, risk, earnings, valuation and institutional ownership.

Risk & Volatility

Macerich has a beta of 2.13, suggesting that its share price is 113% more volatile than the S&P 500. Comparatively, Tanger has a beta of 1.17, suggesting that its share price is 17% more volatile than the S&P 500.

Valuation and Earnings

This table compares Macerich and Tanger”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Macerich	$918.20 million	4.86	-$194.12 million	($0.43)	-41.06
Tanger	$526.06 million	6.73	$98.60 million	$0.84	37.26

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

Institutional and Insider Ownership

87.4% of Macerich shares are owned by institutional investors. Comparatively, 85.2% of Tanger shares are owned by institutional investors. 0.2% of Macerich shares are owned by insiders. Comparatively, 5.7% of Tanger 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.

Dividends

Macerich pays an annual dividend of $0.68 per share and has a dividend yield of 3.9%. Tanger pays an annual dividend of $1.17 per share and has a dividend yield of 3.7%. Macerich pays out -158.1% of its earnings in the form of a dividend. Tanger pays out 139.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Tanger has raised its dividend for 4 consecutive years. Macerich is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Macerich and Tanger, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Macerich	2	6	5	0	2.23
Tanger	0	5	5	0	2.50

Macerich presently has a consensus price target of $19.26, indicating a potential upside of 9.09%. Tanger has a consensus price target of $36.40, indicating a potential upside of 16.29%. Given Tanger’s stronger consensus rating and higher probable upside, analysts plainly believe Tanger is more favorable than Macerich.

Profitability

This table compares Macerich and Tanger’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Macerich	-12.26%	-4.37%	-1.44%
Tanger	17.65%	15.13%	4.03%

Summary

Tanger beats Macerich on 11 of the 16 factors compared between the two stocks.

About Macerich

Macerich is a fully integrated, self-managed and self-administered real estate investment trust (REIT). As a leading owner, operator and developer of high-quality retail real estate in densely populated and attractive U.S. markets, Macerich’s portfolio is concentrated in California, the Pacific Northwest, Phoenix/Scottsdale, and the Metro New York to Washington, D.C. corridor. Developing and managing properties that serve as community cornerstones, Macerich currently owns 47 million square feet of real estate consisting primarily of interests in 44 regional town centers. Macerich is firmly dedicated to advancing environmental goals, social good and sound corporate governance. A recognized leader in sustainability, Macerich has achieved a #1 Global Real Estate Sustainability Benchmark (GRESB) ranking for the North American retail sector for nine consecutive years (2015-2023).

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.