Sifting through countless of stocks in the REITs - Commercial industry can be tedious, and sometimes two stocks are just too similar to judge which is the better investment. If you’re on the fence about investing in Tanger Factory Outlet Centers Inc or Agree Realty Corporation because you’re not sure how they measure up, it’s important to compare them on a few factors before making your decision.

Read on to learn how Tanger Factory Outlet Centers Inc and Agree Realty Corporation compare based on key financial metrics to determine which better meets your investment needs.

About Tanger Factory Outlet Centers Inc and Agree Realty Corporation

Tanger Factory Outlet Centers, Inc. is a fully integrated, self-administered and self-managed real estate investment trust (REIT). The Company is an owner and operator of outlet centers in the United States and Canada. It focuses on developing, acquiring, owning, operating and managing outlet shopping centers. Its outlet centers and other assets are held by, and all of its operations are conducted by Tanger Properties Limited Partnership and subsidiaries (Operating Partnership). It is an operator of upscale open-air outlet centers that owns (or has an ownership interest in) and/or manages a portfolio of about 36 centers with an additional center under development. Its operating properties are located in 20 states and in Canada, totaling about 13.9 million square feet, leased to over 2,700 stores operated by more than 600 different brand name companies. Its consolidated outlet centers include Deer Park, New York, Riverhead, New York, Foley, Alabama, San Marcos, Texas, and others.

Agree Realty Corporation is an integrated real estate investment trust (REIT) primarily focused on the ownership, acquisition, development and management of retail properties net-leased to tenants. The Company's assets are held by, and all of its operations are conducted through, directly or indirectly, the operating partnership, of which the Company is the sole general partner. Its portfolio consists of over 1,839 properties located in 48 states and totaling approximately 38.1 million square feet of gross leasable area (GLA). Its portfolio of properties is located in Texas, Ohio, Florida, Michigan, Illinois, North Carolina, New Jersey, Pennsylvania, California, New York, Georgia, Virginia, Connecticut, Wisconsin and others. Its tenants include Walmart, Dollar General, Tractor Supply, Best Buy, Dollar Tree, TJX Companies, O'Reilly Auto Parts, CVS, Kroger, Lowe's, Hobby Lobby, Burlington, Sherwin-Williams, Sunbelt Rentals, Wawa, Home Depot, TBC Corporation, Gerber Collision and others.

Latest REITs - Commercial and Tanger Factory Outlet Centers Inc, Agree Realty Corporation Stock News

As of September 22, 2023, Tanger Factory Outlet Centers Inc had a $2.4 billion market capitalization, compared to the REITs - Commercial median of $1.6 million. Tanger Factory Outlet Centers Inc’s stock is NA in 2023, NA in the previous five trading days and up 50.13% in the past year.

Currently, Tanger Factory Outlet Centers Inc’s price-earnings ratio is 27.0. Tanger Factory Outlet Centers Inc’s trailing 12-month revenue is $447.5 million with a 19.8% net profit margin. Year-over-year quarterly sales growth most recently was 4.5%. Analysts expect adjusted earnings to reach $0.910 per share for the current fiscal year. Tanger Factory Outlet Centers Inc currently has a 4.3% dividend yield.

Currently, Agree Realty Corporation’s price-earnings ratio is 32.4. Agree Realty Corporation’s trailing 12-month revenue is $483.1 million with a 32.1% net profit margin. Year-over-year quarterly sales growth most recently was -36.1%. Analysts expect adjusted earnings to reach $1.700 per share for the current fiscal year. Agree Realty Corporation currently has a 5.1% dividend yield.

How We Compare Tanger Factory Outlet Centers Inc and Agree Realty Corporation Stock Grades

Stock evaluation requires access to huge amounts of data and the knowledge and time to sift through it all, make sense of financial ratios, read income statements and analyze recent stock movements. AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way suitable for investors of all knowledge levels, to help investors streamline and work through such data.

AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A‐F grades for each of five key investing factors: value, growth, momentum, earnings estimate revisions and quality. Here, we’ll take a closer look at Tanger Factory Outlet Centers Inc and Agree Realty Corporation’s stock grades to see how they measure up against one another.

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Tanger Factory Outlet Centers Inc and Agree Realty Corporation Stock Value Grades

Company	Ticker	Value
Tanger Factory Outlet Centers Inc	SKT	D
Agree Realty Corporation	ADC	F

Successful stock investing involves buying low and selling high, so stock valuation is an important consideration for stock selection.

Buying stocks that are going to go up typically means buying stocks that are undervalued in the first place, although momentum investors may argue that point.

AAII’s A+ Investor Value Grade derives from a stock’s value score. The Value Score is the percentile rank of the average of the percentile ranks of the price-to-sales ratio, price-earnings ratio, enterprise-value-to-EBITDA (EV/EBITDA) ratio, shareholder yield, price-to-book-value ratio and price-to-free-cash-flow ratio. The score is variable, meaning it can consider all six ratios or, should any of the six ratios not be valid, the remaining ratios that are valid. To be assigned a Value Score, stocks must have a valid (non-null) ratio and corresponding ranking for at least two of the six valuation ratios.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are a good value and so on.

Tanger Factory Outlet Centers Inc has a Value Score of 26, which is Expensive. Agree Realty Corporation has a Value Score of 10, which is Ultra Expensive.

The Value Stock Winner: No Clear Winner

Neither Tanger Factory Outlet Centers Inc or Agree Realty Corporation has a high enough value grade to be considered a “winner.” Investors who are considering these companies should do additional due diligence and research to see if either could be a good addition to their portfolio. It’s important to look at a wide range of financial metrics in order to determine if Tanger Factory Outlet Centers Inc or Agree Realty Corporation is the better investment when it comes to value.

Tanger Factory Outlet Centers Inc and Agree Realty Corporation’s Momentum Grades

Company	Ticker	Momentum
Tanger Factory Outlet Centers Inc	SKT	A
Agree Realty Corporation	ADC	D

Momentum grades help to uncover stocks experiencing anomalously high rates of return; research finds that stocks with high relative levels of momentum tend to outperform, whereas those with low levels of momentum tend to continue underperforming. Momentum is based on the price change of a stock over a specified period relative to all other stocks.

Typically, AAII looks at the weighted relative strength over the trailing four quarters. The weighted four-quarter relative strength rank is the relative price change for each of the past four quarters. The most recent quarterly price change is given a weight of 40% and each of the three previous quarters are given a weighting of 20%.

Tanger Factory Outlet Centers Inc has a Momentum Score of 87, which is Very Strong. Agree Realty Corporation has a Momentum Score of 33, which is Weak.

The Momentum Grade Winner: Tanger Factory Outlet Centers Inc

As you can clearly see from the Momentum Grade breakdown above, Tanger Factory Outlet Centers Inc is considered to have stronger momentum compared to Agree Realty Corporation. For those specifically looking for companies that have stronger momentum compared to other companies in the same industry, Tanger Factory Outlet Centers Inc could be a good stock to invest in. However, it’s important for investors to analyze multiple factors based on a wide range of metrics before deciding whether to buy.

Tanger Factory Outlet Centers Inc and Agree Realty Corporation’s Estimate Revisions Grades

Company	Ticker	Earnings Estimate
Tanger Factory Outlet Centers Inc	SKT	B
Agree Realty Corporation	ADC	D

Earnings estimate revisions scores consider the magnitude of a company’s earnings surprise in its last two reported fiscal quarters. Often, positive surprises beget further positive surprises‐or at least continued sales growth (the exact opposite is generally true, too).

Estimate revisions offer an indication of what analysts are thinking about the short-term prospects of a firm. Estimate revisions are based on the statistical significance of a firm’s last two quarterly earnings surprises and the percentage change in its consensus estimate for the current fiscal year over the past month and past three months.

Tanger Factory Outlet Centers Inc has a Earnings Estimate Score of 66, which is Positive. Agree Realty Corporation has a Earnings Estimate Score of 25, which is Negative.

The Earnings Estimate Revisions Grade Winner: Tanger Factory Outlet Centers Inc

As you can clearly see from the Earnings Estimate Revisions Grade breakdown above, Tanger Factory Outlet Centers Inc has a better Earnings Estimate Revisions Grade than Agree Realty Corporation. For those who are specifically looking for companies with better short-term prospects when compared to other companies in the same industry, Tanger Factory Outlet Centers Inc could be a good stock to invest in. However, it’s important to analyze multiple factors based on a wide range of metrics before deciding whether to buy.

Other Tanger Factory Outlet Centers Inc and Agree Realty Corporation Grades

In addition to Value, Estimate Revisions and Momentum, A+ Investor also provides grades for Growth and Quality.

Growth investing builds on the idea that stocks of companies exhibiting strong, consistent and prolonged growth outperform those of slower-growth companies. AAII measures growth through consistency of annual sales growth, five-year sales growth rankings adjusted for extreme levels, and consistency of positive annual cash from operations.

AAII’s A+ Investor Quality Grade comes from the ranking of key metrics. Specifically, the quality grade is the percentile rank of the composite of return on assets (ROA), return on invested capital (ROIC), gross profit relative to assets, buyback yield, change in total liabilities to assets, accruals, Z double prime bankruptcy risk (Z) score and F-Score.

These 2 key factors, when combined with the above, provide a holistic view into a particular stock. Further, by joining A+ Investor you can see whether Tanger Factory Outlet Centers Inc and Agree Realty Corporation pass any of our 60+ stock screens that have outperformed the market since their creation.

So, Which Is the Better Investment, Tanger Factory Outlet Centers Inc or Agree Realty Corporation Stock?

Overall, Tanger Factory Outlet Centers Inc stock has a Value Score of 26, Momentum Score of 87 and Estimate Revisions Score of 66.

Agree Realty Corporation stock has a Value Score of 10, Momentum Score of 33 and Estimate Revisions Score of 25.

Comparing Tanger Factory Outlet Centers Inc and Agree Realty Corporation’s grades, scores and metrics can act as a solid basis to determine whether they may be a good investment or not. You’ll also want to look at your portfolio’s asset allocation as well as your risk tolerance and financial goals to see if either of these stocks would make a good fit for you. AAII can help you figure out which investments align with your individual needs and preferences.

Investors are encouraged to do their own due diligence and research. In this way, individuals can effectively become managers of their own assets‐without having to rely on others for financial independence. You can count on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis.

A+ Investor adds to our qualitative teaching with a powerful data suite to help you whittle down investment choices to find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.

AAII Disclaimer

We make no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown, because past, hypothetical or simulated performance is not necessarily indicative of future results. Before making an investment decision, you should consider your circumstances and whether the information on our content is applicable to your situation. This information was prepared in good faith, and we accept no liability for any errors or omissions. The full disclaimer can be read here.