BrightSpire Capital (NYSE:BRSP – Get Rating) and Tanger Factory Outlet Centers (NYSE:SKT – Get Rating) are both small-cap finance companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, dividends, earnings, risk, analyst recommendations, profitability and valuation.
Insider and Institutional Ownership
38.2% of BrightSpire Capital shares are held by institutional investors. Comparatively, 74.6% of Tanger Factory Outlet Centers shares are held by institutional investors. 1.0% of BrightSpire Capital shares are held by company insiders. Comparatively, 5.8% of Tanger Factory Outlet Centers shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
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Earnings and Valuation
This table compares BrightSpire Capital and Tanger Factory Outlet Centers' top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
| BrightSpire Capital | $119.51 million | 7.90 | -$101.05 million | $0.94 | 7.79 |
| Tanger Factory Outlet Centers | $426.52 million | 4.50 | $9.12 million | $0.72 | 25.56 |
Tanger Factory Outlet Centers has higher revenue and earnings than BrightSpire Capital. BrightSpire Capital is trading at a lower price-to-earnings ratio than Tanger Factory Outlet Centers, indicating that it is currently the more affordable of the two stocks.
Dividends
BrightSpire Capital pays an annual dividend of $0.80 per share and has a dividend yield of 10.9%. Tanger Factory Outlet Centers pays an annual dividend of $0.88 per share and has a dividend yield of 4.8%. BrightSpire Capital pays out 85.1% 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 122.2% 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 has raised its dividend for 1 consecutive years. BrightSpire Capital is clearly the better dividend stock, given its higher yield and lower payout ratio.
Profitability
This table compares BrightSpire Capital and Tanger Factory Outlet Centers' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
| BrightSpire Capital | 75.92% | 8.25% | 2.09% |
| Tanger Factory Outlet Centers | 17.44% | 15.00% | 3.55% |
Analyst Ratings
This is a breakdown of current ratings and price targets for BrightSpire Capital and Tanger Factory Outlet Centers, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
| BrightSpire Capital | 0 | 2 | 3 | 0 | 2.60 |
| Tanger Factory Outlet Centers | 0 | 0 | 1 | 0 | 3.00 |
BrightSpire Capital presently has a consensus target price of $10.25, suggesting a potential upside of 40.03%. Tanger Factory Outlet Centers has a consensus target price of $18.67, suggesting a potential upside of 1.45%. Given BrightSpire Capital's higher possible upside, analysts plainly believe BrightSpire Capital is more favorable than Tanger Factory Outlet Centers.
Risk and Volatility
BrightSpire Capital has a beta of 1.68, indicating that its share price is 68% more volatile than the S&P 500. Comparatively, Tanger Factory Outlet Centers has a beta of 1.8, indicating that its share price is 80% more volatile than the S&P 500.
Summary
Tanger Factory Outlet Centers beats BrightSpire Capital on 10 of the 17 factors compared between the two stocks.
About BrightSpire Capital
(Get Rating)
BrightSpire Capital, Inc. operates as a real estate investment trust. It originates, acquires, finances, and manages diversified portfolio consisting primarily of commercial real estate (CRE) senior mortgage loans, mezzanine loans, preferred equity, debt securities and net leased properties predominantly in the United States. It operates through the following segments: Core Portfolio, and Legacy, Non-Strategic Portfolio. The Core Portfolio segment consists of Senior and Mezzanine Loans and Preferred Equity, CRE Debt Securities, Net Leased Real Estate, and Corporate segments. The Legacy, Non-Strategic Portfolio segment consists of direct investments in operating real estate such as multi-tenant office. The company was founded on August 23, 2017 and is headquartered in New York, NY.
About Tanger Factory Outlet Centers
(Get Rating)
Tanger Factory Outlet Centers, Inc. (NYSE: SKT) is a leading operator of open-air upscale outlet shopping centers that owns, or has an ownership interest in, a portfolio of 38 centers. Tanger's operating properties are located in 20 states and in Canada, totaling approximately 14.1 million square feet, leased to over 2,700 stores operated by more than 500 different brand name companies. The Company has more than 39 years of experience in the outlet industry and is a publicly-traded REIT. Tanger is furnishing a Form 8-K with the Securities and Exchange Commission ("SEC") that includes a supplemental information package for the quarter ended September 30, 2020.
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