Critical Comparison: Jernigan Capital (JCAP) & Tanger Factory Outlet Centers (SKT)

Jernigan Capital (NYSE: JCAP) and Tanger Factory Outlet Centers (NYSE:SKT) are both small-cap finance companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, risk, earnings, institutional ownership, analyst recommendations, valuation and profitability.

Dividends

Jernigan Capital pays an annual dividend of $1.40 per share and has a dividend yield of 7.2%. Tanger Factory Outlet Centers pays an annual dividend of $1.40 per share and has a dividend yield of 6.7%. Jernigan Capital pays out 129.6% 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 Factory Outlet Centers pays out 56.9% of its earnings in the form of a dividend. Tanger Factory Outlet Centers has increased its dividend for 25 consecutive years.

Valuation and Earnings

This table compares Jernigan Capital and Tanger Factory Outlet Centers’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Jernigan Capital $12.19 million 23.24 $14.55 million $1.08 18.00
Tanger Factory Outlet Centers $488.23 million 4.08 $68.00 million $2.46 8.56

Tanger Factory Outlet Centers has higher revenue and earnings than Jernigan Capital. Tanger Factory Outlet Centers is trading at a lower price-to-earnings ratio than Jernigan Capital, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

69.2% of Jernigan Capital shares are owned by institutional investors. 3.2% of Jernigan Capital shares are owned by insiders. Comparatively, 2.1% of Tanger Factory Outlet Centers shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Jernigan Capital and Tanger Factory Outlet Centers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Jernigan Capital 118.85% 6.59% 5.32%
Tanger Factory Outlet Centers 13.85% 10.97% 2.68%

Volatility & Risk

Jernigan Capital has a beta of 0.56, indicating that its stock price is 44% less volatile than the S&P 500. Comparatively, Tanger Factory Outlet Centers has a beta of 0.51, indicating that its stock price is 49% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and price targets for Jernigan Capital and Tanger Factory Outlet Centers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Jernigan Capital 0 1 5 0 2.83
Tanger Factory Outlet Centers 3 3 0 0 1.50

Jernigan Capital presently has a consensus target price of $24.20, indicating a potential upside of 24.49%. Tanger Factory Outlet Centers has a consensus target price of $23.70, indicating a potential upside of 12.59%. Given Jernigan Capital’s stronger consensus rating and higher probable upside, research analysts plainly believe Jernigan Capital is more favorable than Tanger Factory Outlet Centers.

Summary

Jernigan Capital beats Tanger Factory Outlet Centers on 11 of the 17 factors compared between the two stocks.

Jernigan Capital Company Profile

Jernigan Capital, Inc. is a New York Stock Exchange-listed real estate investment trust (NYSE: JCAP) that provides debt and equity capital to private developers, owners, and operators of self-storage facilities. Our mission is to be the preeminent capital partner for self-storage entrepreneurs nationwide by offering creative solutions through an experienced team demonstrating the highest levels of integrity, dedication, excellence and community, while maximizing shareholder value. The Jernigan Capital team has extensive experience in over 100 U.S. markets?from acquiring and managing self-storage properties to new self-storage development?providing JCAP with knowledge unmatched by any lender, broker or advisor to the sector. Jernigan Capital is the only source of construction and development capital focused solely on the self-storage sector.

Tanger Factory Outlet Centers Company Profile

Tanger Factory Outlet Centers, Inc. (NYSE: SKT), is a publicly-traded REIT headquartered in Greensboro, North Carolina that operates and owns, or has an ownership interest in, a portfolio of 44 upscale outlet shopping centers. Tanger's operating properties are located in 22 states coast to coast and in Canada, totaling approximately 15.3 million square feet leased to over 3,100 stores operated by more than 500 different brand name companies. The Company has more than 37 years experience in the outlet industry. Tanger Outlet Centers continue to attract more than 188 million shoppers annually.

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