Analyzing Agree Realty (NYSE:ADC) and Urban Edge Properties (NYSE:UE)

Urban Edge Properties (NYSE:UE) and Agree Realty (NYSE:ADC) are both mid-cap real estate companies, but which is the better business? We will compare the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, analyst recommendations, valuation and dividends.

Valuation and Earnings

This table compares Urban Edge Properties and Agree Realty”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Urban Edge Properties	$471.93 million	5.58	$93.54 million	$0.83	25.15
Agree Realty	$718.40 million	12.65	$204.35 million	$1.94	35.99

Agree Realty has higher revenue and earnings than Urban Edge Properties. Urban Edge Properties is trading at a lower price-to-earnings ratio than Agree Realty, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Urban Edge Properties has a beta of 1.04, meaning that its share price is 4% more volatile than the S&P 500. Comparatively, Agree Realty has a beta of 0.4, meaning that its share price is 60% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Urban Edge Properties and Agree Realty, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Urban Edge Properties	0	2	2	0	2.50
Agree Realty	0	6	10	1	2.71

Urban Edge Properties currently has a consensus price target of $22.67, suggesting a potential upside of 8.59%. Agree Realty has a consensus price target of $79.85, suggesting a potential upside of 14.36%. Given Agree Realty’s stronger consensus rating and higher possible upside, analysts clearly believe Agree Realty is more favorable than Urban Edge Properties.

Profitability

This table compares Urban Edge Properties and Agree Realty’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Urban Edge Properties	21.12%	7.53%	3.09%
Agree Realty	29.75%	4.00%	2.43%

Dividends

Urban Edge Properties pays an annual dividend of $0.84 per share and has a dividend yield of 4.0%. Agree Realty pays an annual dividend of $3.25 per share and has a dividend yield of 4.7%. Urban Edge Properties pays out 101.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Agree Realty pays out 167.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Urban Edge Properties has raised its dividend for 2 consecutive years and Agree Realty has raised its dividend for 1 consecutive years.

Insider & Institutional Ownership

94.9% of Urban Edge Properties shares are owned by institutional investors. Comparatively, 97.8% of Agree Realty shares are owned by institutional investors. 2.7% of Urban Edge Properties shares are owned by insiders. Comparatively, 1.8% of Agree Realty shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

Agree Realty beats Urban Edge Properties on 12 of the 18 factors compared between the two stocks.

About Urban Edge Properties

Urban Edge Properties is a real estate investment trust that owns, manages, leases and redevelops retail properties. Its portfolio includes shopping centers and other retail destinations, with many properties anchored by grocery stores and serving densely populated communities. The company focuses on the Northeast and Mid-Atlantic, including the New York metropolitan area and markets around Washington, D.C. Its work includes leasing space to retailers and investing in property improvements and redevelopment.

About Agree Realty

Agree Realty Corporation is a real estate investment trust (REIT) focused on acquiring, developing and managing net-leased properties, primarily occupied by retail businesses. Its portfolio includes freestanding stores and other properties leased to national and regional retailers. Under net leases, tenants generally assume responsibility for property expenses such as taxes, insurance and maintenance, while Agree Realty owns the real estate and collects rent. The company’s properties are located across the United States.